--- kind: "range" citation: "16 U.S.C. §§ 791a–825r" title: "16" from: "791a" to: "825r" count: 97 release: "119-102" url: "https://uscodex.org/usc/16/791a..825r" --- # §791a. Short title This chapter may be cited as the “Federal Power Act”. # §792. Federal Power Commission; creation; number; appointment; term; qualifications; vacancies; quorum; chairman; salary; place of holding sessions A [commission](/usc/16/410cc–1.md?p=3) is created and established to be known as the Federal Power [Commission](/usc/16/410cc–1.md?p=3) (hereinafter referred to as the “[commission](/usc/16/410cc–1.md?p=3)”) which shall be composed of five [commissioners](/usc/16/3601.md?p=3) who shall be appointed by the President, by and with the advice and consent of the Senate, one of whom shall be designated by the President as chairman and shall be the principal executive officer of the [commission](/usc/16/410cc–1.md?p=3). Each chairman, when so designated, shall act as such until the expiration of his term of office. The [commissioners](/usc/16/3601.md?p=3) first appointed under this section, as amended, shall continue in office for terms of one, two, three, four, and five years, respectively, from June 23, 1930, the term of each to be designated by the President at the time of nomination. Their successors shall be appointed each for a term of five years from the date of the expiration of the term for which his predecessor was appointed and until his successor is appointed and has qualified, except that he shall not so continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office, and except that any [person](/usc/16/450rr–1.md?p=b) appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed only for the unexpired term. Not more than three of the [commissioners](/usc/16/3601.md?p=3) shall be appointed from the same political party. No [person](/usc/16/450rr–1.md?p=b) in the employ of or holding any official relation to any [licensee](/usc/16/796.md?p=5) or to any [person](/usc/16/450rr–1.md?p=b), firm, association, or corporation engaged in the generation, transmission, distribution, or sale of power, or owning stock or bonds thereof, or who is in any manner pecuniarily interested therein, shall enter upon the duties of or hold the office of [commissioners](/usc/16/3601.md?p=3). Said [commissioners](/usc/16/3601.md?p=3) shall not engage in any other business, vocation, or employment. No vacancy in the [commission](/usc/16/410cc–1.md?p=3) shall impair the right of the remaining [commissioners](/usc/16/3601.md?p=3) to exercise all the powers of the [commission](/usc/16/410cc–1.md?p=3). Three members of the [commission](/usc/16/410cc–1.md?p=3) shall constitute a quorum for the transaction of business, and the [commission](/usc/16/410cc–1.md?p=3) shall have an official seal of which judicial notice shall be taken. The [commission](/usc/16/410cc–1.md?p=3) shall annually elect a vice chairman to act in case of the absence or disability of the chairman or in case of a vacancy in the office of chairman. Each [commissioner](/usc/16/3601.md?p=3) shall receive necessary traveling and subsistence expenses, or per diem allowance in lieu thereof, within the limitation prescribed by law, while away from the seat of government upon official business. The principal office of the [commission](/usc/16/410cc–1.md?p=3) shall be in the District of Columbia, where its general sessions shall be held; but whenever the convenience of the public or of the parties may be promoted or delay or expense prevented thereby, the [commission](/usc/16/410cc–1.md?p=3) may hold special sessions in any part of the United States. # §793. Appointment of officers and employees of Commission; duties, and salaries; detail of officers and employees from other departments; expenditures authorized The [commission](/usc/16/410cc–1.md?p=3) shall have authority to appoint, prescribe the duties, and fix the salaries of, a [secretary](/usc/16/410r–5.md?p=c-1), a chief engineer, a general counsel, a solicitor, and a chief accountant; and may, subject to the civil service laws, appoint such other officers and employees as are necessary in the execution of its functions and fix their salaries in accordance with [chapter 51](/usc/16/ch51.md) and subchapter III of [chapter 53](/usc/5/chptIII-sptD-ch53.md) of title 5. The [commission](/usc/16/410cc–1.md?p=3) may request the President to detail an officer or officers from the [Corps](/usc/16/1722.md?p=2) of Engineers, or other branches of the United States Army, to serve the [commission](/usc/16/410cc–1.md?p=3) as engineer officer or officers, or in any other capacity, in field work outside the seat of government, their duties to be prescribed by the [commission](/usc/16/410cc–1.md?p=3); and such detail is authorized. The President may also, at the request of the [commission](/usc/16/410cc–1.md?p=3), detail, assign, or transfer to the [commission](/usc/16/410cc–1.md?p=3), engineers in or under the Departments of the Interior or Agriculture for field work outside the seat of government under the direction of the [commission](/usc/16/410cc–1.md?p=3). The [commission](/usc/16/410cc–1.md?p=3) may make such expenditures (including expenditures for rent and personal services at the seat of government and elsewhere, for law books, periodicals, and books of reference, and for printing and binding) as are necessary to execute its functions. Expenditures by the [commission](/usc/16/410cc–1.md?p=3) shall be allowed and paid upon the presentation of itemized vouchers therefor, approved by the chairman of the [commission](/usc/16/410cc–1.md?p=3) or by such other member or officer as may be authorized by the [commission](/usc/16/410cc–1.md?p=3) for that purpose subject to applicable regulations under [chapters 1 to 11](/usc/40/ch1..11.md) of title 40 and division C (except sections [3302](/usc/16/3302.md), 3306(f), 3307(e), [3501(b)](/usc/16/3501.md?p=b), [3509](/usc/16/3509.md), 3906, [4104](/usc/16/4104.md), 4710, and [4711](/usc/16/4711.md)) of subtitle I of [title 41](/usc/41.md). # [§793a. Repealed. Pub. L. 87–367, title I, § 103(5), Oct. 4, 1961, 75 Stat. 787 — repealed] # [§794. Omitted — omitted] # [§795. Omitted — omitted] # §796. Definitions The words defined in this section shall have the following meanings for purposes of this chapter, to wit: - (1) “public lands” means such lands and interest in lands owned by the United States as are subject to private appropriation and disposal under public land laws. It shall not include “[reservations](#2)”, as hereinafter defined; - (2) “reservations” means [national forests](/usc/16/5207.md?p=3), tribal lands embraced within Indian reservations, military reservations, and other lands and interests in lands owned by the United States, and withdrawn, reserved, or withheld from private appropriation and disposal under the public land laws; also lands and interests in lands acquired and held for any public purposes; but shall not include national monuments or [national parks](/usc/16/410hhh–1.md?p=5); - (3) “corporation” means any corporation, joint-stock company, [partnership](/usc/16/8202.md?p=7), association, business [trust](/usc/16/450ss–1.md?p=4), organized group of [persons](#4), whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing. It shall not include “[municipalities](#7)” as hereinafter defined; - (4) “person” means an individual or a [corporation](#3); - (5) “licensee” means any [person](#4), [State](#6), or [municipality](#7) licensed under the provisions of [section 797 of this title](/usc/16/797.md), and any assignee or successor in interest thereof; - (6) “State” means a State admitted to the Union, the District of Columbia, and any organized Territory of the United States; - (7) “municipality” means a city, county, irrigation district, drainage district, or other political [subdivision](/usc/16/539m–1.md?p=15) or agency of a [State](#6) competent under the laws thereof to carry on the business of developing, transmitting, utilizing, or distributing power; - (8) “navigable waters” means those parts of 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](/usc/16/544.md?p=r), and which either in their natural or improved condition notwithstanding interruptions between the navigable parts of such streams or waters by falls, shallows, or rapids compelling land carriage, are used or suitable for use for the transportation of [persons](#4) or property in interstate or foreign commerce, including therein all such interrupting falls, shallows, or rapids, together with such other parts of streams as shall have been authorized by Congress for improvement by the United States or shall have been recommended to Congress for such improvement after investigation under its authority; - (9) “municipal purposes” means and includes all purposes within municipal powers as defined by the constitution or laws of the [State](#6) or by the charter of the [municipality](#7); - (10) “Government dam” means a dam or other work constructed or owned by the United States for Government purposes with or without contribution from others; - (11) “project” means complete [unit](/usc/16/430f–7.md?p=4) of improvement or development, consisting of a power house, all water conduits, all dams and appurtenant works and structures (including navigation structures) which are a part of said [unit](/usc/16/430f–7.md?p=4), and all storage, diverting, or forebay reservoirs directly connected therewith, the primary line or lines transmitting power therefrom to the point of junction with the distribution [system](/usc/16/668ee.md?p=14) or with the interconnected primary transmission [system](/usc/16/668ee.md?p=14), all miscellaneous structures used and useful in connection with said [unit](/usc/16/430f–7.md?p=4) or any part thereof, and all water-rights, rights-of-way, ditches, dams, reservoirs, lands, or interest in lands the use and occupancy of which are necessary or appropriate in the maintenance and operation of such [unit](/usc/16/430f–7.md?p=4); - (12) “project works” means the physical structures of a [project](#11); - (13) “net investment” in a [project](#11) means the actual legitimate original cost thereof as defined and interpreted in the “classification of investment in road and equipment of steam roads, issue of 1914, Interstate Commerce [Commission](/usc/16/410cc–1.md?p=3)”, plus similar costs of [additions](/usc/16/410r–5.md?p=c-2) thereto and betterments thereof, minus the sum of the following items properly allocated thereto, if and to the extent that such items have been accumulated during the period of the license from earnings in excess of a fair return on such investment: (a) Unappropriated surplus, (b) aggregate credit balances of current depreciation accounts, and (c) aggregate appropriations of surplus or income held in amortization, sinking [fund](/usc/16/1421h.md?p=2), or similar reserves, or expended for [additions](/usc/16/410r–5.md?p=c-2) or betterments or used for the purposes for which such reserves were created. The term “cost” shall include, insofar as applicable, the elements thereof prescribed in said classification, but shall not include expenditures from [funds](/usc/16/1421h.md?p=2) obtained through donations by [States](/usc/16/544.md?p=r), [municipalities](#7), individuals, or others, and said classification of investment of the Interstate Commerce [Commission](/usc/16/410cc–1.md?p=3) shall insofar as applicable be published and promulgated as a part of the rules and regulations of the [Commission](/usc/16/410cc–1.md?p=3); - (14) “[Commission](/usc/16/410cc–1.md?p=3)” and “[Commissioner](/usc/16/3601.md?p=3)” means the Federal Power [Commission](/usc/16/410cc–1.md?p=3), and a member thereof, respectively; - (15) “State commission” means the regulatory body of the [State](#6) or [municipality](#7) having jurisdiction to regulate rates and charges for the sale of electric energy to consumers within the [State](#6) or [municipality](#7); - (16) “security” means any note, stock, treasury stock, bond, debenture, or other evidence of interest in or indebtedness of a [corporation](#3) subject to the provisions of this chapter; - (17) - (A) “small power production facility” means a facility which is an eligible solar, wind, waste, or geothermal facility, or a facility which— - (i) produces electric energy solely by the use, as a [primary energy source](#17-B), of biomass, waste, renewable [resources](/usc/16/410hhh–1.md?p=8), geothermal [resources](/usc/16/410hhh–1.md?p=8), or any combination thereof; and - (ii) has a power production capacity which, together with any other facilities located at the same site (as determined by the [Commission](/usc/16/410cc–1.md?p=3)), is not greater than 80 megawatts; - (B) “primary energy source” means the fuel or fuels used for the generation of electric energy, except that such term does not include, as determined under rules prescribed by the [Commission](/usc/16/410cc–1.md?p=3), in consultation with the [Secretary](/usc/16/410r–5.md?p=c-1) of Energy— - (i) the minimum amounts of fuel required for ignition, startup, testing, flame stabilization, and control [uses](/usc/16/410hhh–1.md?p=10), and - (ii) the minimum amounts of fuel required to alleviate or prevent— - (I) unanticipated equipment outages, and - (II) emergencies, directly affecting the public health, safety, or welfare, which would result from electric power outages; - (C) “qualifying small power production facility” means a [small power production facility](#17-A) that the [Commission](/usc/16/410cc–1.md?p=3) determines, by rule, meets such requirements (including requirements respecting fuel use, fuel efficiency, and reliability) as the [Commission](/usc/16/410cc–1.md?p=3) may, by rule, prescribe; - (D) “qualifying small power producer” means the [owner](/usc/16/429b–3.md?p=4) or operator of a [qualifying small power production facility](#17-C); - (E) “eligible solar, wind, waste or geothermal facility” means a facility which produces electric energy solely by the use, as a [primary energy source](#17-B), of solar energy, wind energy, waste [resources](/usc/16/410hhh–1.md?p=8) or geothermal [resources](/usc/16/410hhh–1.md?p=8); but only if— - (i) either of the following is submitted to the [Commission](/usc/16/410cc–1.md?p=3) not later than December 31, 1994: - (I) an application for certification of the facility as a [qualifying small power production facility](#17-C); or - (II) notice that the facility meets the requirements for qualification; and - (ii) construction of such facility commences not later than December 31, 1999, or, if not, reasonable diligence is exercised toward the completion of such facility taking into account all factors relevant to construction of the facility.[^1] - (18) - (A) “cogeneration facility” means a facility which produces— - (i) electric energy, and - (ii) steam or forms of useful energy (such as heat) which are used for industrial, commercial, heating, or cooling purposes; - (B) “qualifying cogeneration facility” means a [cogeneration facility](#18-A) that the [Commission](/usc/16/410cc–1.md?p=3) determines, by rule, meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the [Commission](/usc/16/410cc–1.md?p=3) may, by rule, prescribe; - (C) “qualifying cogenerator” means the [owner](/usc/16/429b–3.md?p=4) or operator of a [qualifying cogeneration facility](#18-B); - (19) “Federal power marketing agency” means any agency or instrumentality of the United States (other than the Tennessee Valley Authority) which sells electric energy; - (20) “evidentiary hearings” and “evidentiary proceeding” mean a proceeding conducted as provided in sections [554](/usc/5/554.md), [556](/usc/5/556.md), and [557](/usc/5/557.md) of title 5; - (21) “[State](#6) regulatory authority” has the same meaning as the term “[State commission](#15)”, except that in the case of an [electric utility](#22-B) with respect to which the Tennessee Valley Authority has ratemaking authority (as defined in [section 2602 of this title](/usc/16/2602.md)), such term means the Tennessee Valley Authority; - (22) **Electric utility.—** - (A) The term “[electric utility](#22-B)” means a [person](#4) or Federal or [State](#6) agency (including an entity described in [section 824(f) of this title](/usc/16/824.md?p=f)) that sells electric energy.[^1] - (B) The term “electric utility” includes the Tennessee Valley Authority and each Federal power marketing administration.[^1] - (23) **Transmitting utility.—** The term “transmitting utility” means an entity (including an entity described in [section 824(f) of this title](/usc/16/824.md?p=f)) that owns, operates, or controls facilities used for the transmission of electric energy— - (A) in interstate commerce; - (B) for the sale of electric energy at wholesale.[^1] - (24) **Wholesale transmission services.—** The term “wholesale transmission services” means the transmission of electric energy sold, or to be sold, at wholesale in interstate commerce.[^1] - (25) **Exempt wholesale generator.—** The term “exempt wholesale generator” shall have the meaning provided by section 79z–5a[^2] of title 15.[^1] - (26) **Electric cooperative.—** The term “electric cooperative” means a cooperatively owned [electric utility](#22-B).[^1] - (27) **RTO.—** The term “Regional Transmission Organization” or “RTO” means an entity of sufficient regional scope approved by the [Commission](/usc/16/410cc–1.md?p=3)— - (A) to exercise operational or functional control of facilities used for the transmission of electric energy in interstate commerce; and - (B) to ensure nondiscriminatory access to the facilities.[^1] - (28) **ISO.—** The term “Independent System Operator” or “ISO” means an entity approved by the [Commission](/usc/16/410cc–1.md?p=3)— - (A) to exercise operational or functional control of facilities used for the transmission of electric energy in interstate commerce; and - (B) to ensure nondiscriminatory access to the facilities.[^3] - (29) **Transmission organization.—** The term “Transmission Organization” means a [Regional Transmission Organization](#27), [Independent System Operator](#28), independent transmission provider, or other transmission organization finally approved by the [Commission](/usc/16/410cc–1.md?p=3) for the operation of transmission facilities. # §797. General powers of Commission The [Commission](/usc/16/410cc–1.md?p=3) is authorized and empowered— - (a) **Investigations and data—** To make investigations and to collect and record data concerning the utilization of the water [resources](/usc/16/410hhh–1.md?p=8) of any [region](/usc/16/1447a.md?p=6) to be developed, the water-power industry and its relation to other industries and to interstate or foreign commerce, and concerning the location, capacity, development costs, and relation to markets of power sites, and whether the power from Government dams can be advantageously used by the United States for its public purposes, and what is a fair value of such power, to the extent the [Commission](/usc/16/410cc–1.md?p=3) may deem necessary or useful for the purposes of this chapter. - (b) **Statements as to investment of licensees in projects; access to projects, maps, etc.** To determine the actual legitimate original cost of and the net investment in a licensed [project](/usc/16/410r–5.md?p=c-4), and to aid the [Commission](/usc/16/410cc–1.md?p=3) in such determinations, each [licensee](/usc/16/796.md?p=5) shall, upon oath, within a reasonable period of time to be fixed by the [Commission](/usc/16/410cc–1.md?p=3), after the construction of the original [project](/usc/16/410r–5.md?p=c-4) or any [addition](/usc/16/410r–5.md?p=c-2) thereto or betterment thereof, file with the [Commission](/usc/16/410cc–1.md?p=3) in such detail as the [Commission](/usc/16/410cc–1.md?p=3) may require, a statement in duplicate showing the actual legitimate original cost of construction of such [project](/usc/16/410r–5.md?p=c-4) [addition](/usc/16/410r–5.md?p=c-2), or betterment, and of the price paid for water rights, rights-of-way, lands, or interest in lands. The [licensee](/usc/16/796.md?p=5) shall grant to the [Commission](/usc/16/410cc–1.md?p=3) or to its duly authorized agent or agents, at all reasonable times, free access to such [project](/usc/16/410r–5.md?p=c-4), [addition](/usc/16/410r–5.md?p=c-2), or betterment, and to all [maps](/usc/16/430f–7.md?p=1), profiles, contracts, reports of engineers, accounts, books, records, and all other papers and documents relating thereto. The statement of actual legitimate original cost of said [project](/usc/16/410r–5.md?p=c-4), and revisions thereof as determined by the [Commission](/usc/16/410cc–1.md?p=3), shall be filed with the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury. - (c) **Cooperation with executive departments; information and aid furnished Commission—** To cooperate with the executive departments and other agencies of [State](/usc/16/6456.md?p=2) or National Governments in such investigations; and for such purpose the several departments and agencies of the National Government are authorized and directed upon the request of the [Commission](/usc/16/410cc–1.md?p=3), to furnish such records, papers, and information in their possession as may be requested by the [Commission](/usc/16/410cc–1.md?p=3), and temporarily to detail to the [Commission](/usc/16/410cc–1.md?p=3) such officers or experts as may be necessary in such investigations. - (d) **Publication of information, etc.; reports to Congress—** To make public from time to time the information secured hereunder, and to provide for the publication of its reports and investigations in such form and manner as may be best adapted for public information and use. The [Commission](/usc/16/410cc–1.md?p=3), on or before the 3d day of January of each year, shall submit to Congress for the fiscal year preceding a classified report showing the permits and licenses issued under this subchapter, and in each case the parties thereto, the terms prescribed, and the moneys received if any, or account thereof. - (e) **Issue of licenses for construction, etc., of dams, conduits, reservoirs, etc.** To issue licenses to citizens of the United States, or to any association of such citizens, or to any corporation organized under the laws of the United States or any [State](/usc/16/6456.md?p=2) thereof, or to any [State](/usc/16/6456.md?p=2) or [municipality](/usc/16/2708.md?p=a-7) for the purpose of constructing, operating, and maintaining dams, water conduits, reservoirs, power houses, transmission lines, or other [project](/usc/16/410r–5.md?p=c-4) works necessary or convenient for the development and improvement of navigation 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](/usc/16/544.md?p=r), or upon any part of the [public lands](/usc/16/620e.md?p=7) 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 reservation only after a finding by the [Commission](/usc/16/410cc–1.md?p=3) 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](/usc/16/410r–5.md?p=c-1) of the department under whose supervision such reservation falls shall deem necessary for the adequate protection and utilization of such reservation:[^1] The license applicant and any party to the proceeding shall be entitled to a determination on the record, after opportunity for an agency trial-type hearing of no more than 90 days, on any disputed issues of material fact with respect to such conditions. All disputed issues of material fact raised by any party shall be determined in a single trial-type hearing to be conducted by the relevant resource agency in accordance with the regulations promulgated under this subsection and within the time frame established by the [Commission](/usc/16/410cc–1.md?p=3) for each license proceeding. Within 90 days of August 8, 2005, the [Secretaries](/usc/16/410r–5.md?p=c-1) of the Interior, Commerce, and Agriculture shall establish jointly, by rule, the procedures for such expedited trial-type hearing, including the opportunity to undertake discovery and cross-examine witnesses, in consultation with the Federal Energy Regulatory [Commission](/usc/16/410cc–1.md?p=3).[^2] Provided further, That no license affecting the navigable capacity of any navigable waters of the United States shall be issued until the plans of the dam or other structures affecting the navigation have been approved by the Chief of Engineers and the [Secretary](/usc/16/410r–5.md?p=c-1) of the Army. Whenever the contemplated improvement is, in the judgment of the [Commission](/usc/16/410cc–1.md?p=3), 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](/usc/16/410cc–1.md?p=3) and shall become a part of the records of the [Commission](/usc/16/410cc–1.md?p=3): Provided further, That in case the [Commission](/usc/16/410cc–1.md?p=3) shall find that any Government dam may be advantageously used by the United States for public purposes in [addition](/usc/16/410r–5.md?p=c-2) to navigation, no license 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 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)](#f) of this section, notice shall be given and published as required by the proviso of said subsection. In deciding whether to issue any license under this subchapter for any [project](/usc/16/410r–5.md?p=c-4), the [Commission](/usc/16/410cc–1.md?p=3), in [addition](/usc/16/410r–5.md?p=c-2) to the power and development purposes for which licenses are issued, shall give equal consideration to the purposes of energy [conservation](/usc/16/6456.md?p=2), the protection, mitigation of damage to, and enhancement of, fish and wildlife (including related spawning grounds and habitat), the protection of recreational opportunities, and the preservation of other aspects of environmental quality. - (f) **Preliminary permits; notice of application—** 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 802 of this title](/usc/16/802.md): Provided, however, That upon the filing of any application for a preliminary permit by any [person](/usc/16/450rr–1.md?p=b), association, or corporation the [Commission](/usc/16/410cc–1.md?p=3), before granting such application, shall at once give notice of such application in writing to any [State](/usc/16/6456.md?p=2) or [municipality](/usc/16/2708.md?p=a-7) likely to be interested in or affected by such application; and 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](/usc/16/544.md?p=d) in which the [project](/usc/16/410r–5.md?p=c-4) or any part hereof or the lands affected thereby are situated. - (g) **Investigation of occupancy for developing power; orders—** Upon its own motion to order an investigation of any occupancy of, or evidenced intention to occupy, for the purpose of developing electric power, [public lands](/usc/16/620e.md?p=7), 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](/usc/16/544.md?p=r) by any [person](/usc/16/450rr–1.md?p=b), corporation, [State](/usc/16/6456.md?p=2), or [municipality](/usc/16/2708.md?p=a-7) 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](/usc/16/410hhh–1.md?p=8) of the [region](/usc/16/1447a.md?p=6). # §797a. Congressional authorization for permits, licenses, leases, or authorizations for dams, conduits, reservoirs, etc., within national parks or monuments On and after March 3, 1921, 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 constituted, March 3, 1921, of any [national park](/usc/16/410hhh–1.md?p=5) or national monument shall be granted or made without specific authority of Congress. # §797b. Duty to keep Congress fully and currently informed The Federal Energy Regulatory [Commission](/usc/16/410cc–1.md?p=3) shall keep the [Committee](/usc/16/941b.md?p=1) on Energy and Commerce of the United States House of [Representatives](/usc/16/5609.md?p=13) and the [Committee](/usc/16/941b.md?p=1) on Energy and Natural [Resources](/usc/16/410hhh–1.md?p=8) of the United States Senate fully and currently informed regarding actions of the [Commission](/usc/16/410cc–1.md?p=3) with respect to the provisions of Part I of the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.]. # §797c. Dams in National Park System units After October 24, 1992, the Federal Energy Regulatory [Commission](/usc/16/410cc–1.md?p=3) may not issue an original license under Part I of the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.] (nor an exemption from such Part) for any new hydroelectric power [project](/usc/16/410r–5.md?p=c-4) located within the boundaries of any [unit](/usc/16/430f–7.md?p=4) of the [National Park](/usc/16/410hhh–1.md?p=5) [System](/usc/16/668ee.md?p=14) that would have a direct adverse effect on [Federal lands](/usc/16/620e.md?p=2) within any such [unit](/usc/16/430f–7.md?p=4). Nothing in this section shall be construed as repealing any existing provision of law (or affecting any treaty) explicitly authorizing a hydroelectric power [project](/usc/16/410r–5.md?p=c-4). # §797d. Third party contracting by FERC - (a) **Environmental impact statements—** Where the Federal Energy Regulatory [Commission](/usc/16/410cc–1.md?p=3) is required to prepare a draft or final environmental impact statement under the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) and following) in connection with an application for a license under part I of the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.], the [Commission](/usc/16/410cc–1.md?p=3) may permit, at the election of the applicant, a contractor, consultant or other [person](/usc/16/450rr–1.md?p=b) funded by the applicant and chosen by the [Commission](/usc/16/410cc–1.md?p=3) from among a list of such individuals or companies determined by the [Commission](/usc/16/410cc–1.md?p=3) to be qualified to do such work, to prepare such statement for the [Commission](/usc/16/410cc–1.md?p=3). The contractor shall execute a disclosure statement prepared by the [Commission](/usc/16/410cc–1.md?p=3) specifying that it has no financial or other interest in the outcome of the [project](/usc/16/410r–5.md?p=c-4). The [Commission](/usc/16/410cc–1.md?p=3) shall establish the scope of work and procedures to assure that the contractor, consultant or other [person](/usc/16/450rr–1.md?p=b) has no financial or other potential conflict of interest in the outcome of the proceeding. Nothing herein shall affect the [Commission](/usc/16/410cc–1.md?p=3)’s responsibility to comply with the National Environmental Policy Act of 1969. - (b) **Environmental assessments—** Where an environmental assessment is required under the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) and following) in connection with an application for a license under part I of the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.], the [Commission](/usc/16/410cc–1.md?p=3) may permit an applicant, or a contractor, consultant or other [person](/usc/16/450rr–1.md?p=b) selected by the applicant, to prepare such environmental assessment. The [Commission](/usc/16/410cc–1.md?p=3) shall [institute](/usc/16/6703.md?p=4) procedures, including pre-application consultations, to advise potential applicants of studies or other information foreseeably required by the [Commission](/usc/16/410cc–1.md?p=3). The [Commission](/usc/16/410cc–1.md?p=3) may allow the filing of such applicant-prepared environmental assessments as part of the application. Nothing herein shall affect the [Commission](/usc/16/410cc–1.md?p=3)’s responsibility to comply with the National Environmental Policy Act of 1969. - (c) **Effective date—** This section shall take effect with respect to license applications filed after October 24, 1992. # §798. Purpose and scope of preliminary permits; transfer and cancellation - (a) **Purpose—** Each preliminary permit issued under this subchapter shall be for the sole purpose of maintaining priority of application for a license under the terms of this chapter for such period or periods, not exceeding a total of 4 years, as in the discretion of the [Commission](/usc/16/410cc–1.md?p=3) may be necessary for making examinations and surveys, for preparing [maps](/usc/16/430f–7.md?p=1), plans, specifications, and estimates, and for making financial arrangements. - (b) **Extension of period—** The [Commission](/usc/16/410cc–1.md?p=3) may— - (1) extend the period of a preliminary permit once for not more than 4 additional years beyond the 4 years permitted by [subsection (a)](#a) if the [Commission](/usc/16/410cc–1.md?p=3) finds that the permittee has carried out activities under such permit in good faith and with reasonable diligence; and - (2) after the end of an extension period granted under [paragraph (1)](#b-1), issue an additional permit to the permittee if the [Commission](/usc/16/410cc–1.md?p=3) determines that there are extraordinary circumstances that warrant the issuance of the additional permit. - (c) **Permit conditions—** Each such permit shall set forth the conditions under which priority shall be maintained. - (d) **Non-transferability and cancellation of permits—** Such permits shall not be transferable, and may be canceled by order of the [Commission](/usc/16/410cc–1.md?p=3) upon failure of permittees to comply with the conditions thereof or for other good cause shown after notice and opportunity for hearing. # §799. License; duration, conditions, revocation, alteration, or surrender Licenses under this subchapter shall be issued for a period not exceeding fifty years. Each such license shall be conditioned upon acceptance by the [licensee](/usc/16/796.md?p=5) of all of the terms and conditions of this chapter and such further conditions, if any, as the [Commission](/usc/16/410cc–1.md?p=3) shall prescribe in conformity with this chapter, 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 prescribed under the provisions of this chapter, and may be altered or surrendered only upon mutual agreement between the [licensee](/usc/16/796.md?p=5) and the [Commission](/usc/16/410cc–1.md?p=3) after thirty days’ public notice. # §800. Issuance of preliminary permits or licenses - (a) **Preference—** In issuing preliminary permits hereunder or original licenses where no preliminary permit has been issued, the [Commission](/usc/16/410cc–1.md?p=3) shall give preference to applications therefor by [States](/usc/16/544.md?p=r), [Indian tribes](/usc/16/544.md?p=g), and [municipalities](/usc/16/2708.md?p=a-7), provided the plans for the same are deemed by the [Commission](/usc/16/410cc–1.md?p=3) equally well adapted, or shall within a reasonable time to be fixed by the [Commission](/usc/16/410cc–1.md?p=3) be made equally well adapted, to conserve and utilize in the public interest the water [resources](/usc/16/410hhh–1.md?p=8) of the [region](/usc/16/1447a.md?p=6); and as between other applicants, the [Commission](/usc/16/410cc–1.md?p=3) may give preference to the applicant the plans of which it finds and determines are best adapted to develop, conserve, and utilize in the public interest the water [resources](/usc/16/410hhh–1.md?p=8) of the [region](/usc/16/1447a.md?p=6), if it be satisfied as to the ability of the applicant to carry out such plans. - (b) **Development of water resources by United States; reports—** Whenever, in the judgment of the [Commission](/usc/16/410cc–1.md?p=3), the development of any water [resources](/usc/16/410hhh–1.md?p=8) for public purposes should be undertaken by the United States itself, the [Commission](/usc/16/410cc–1.md?p=3) shall not approve any application for any [project](/usc/16/410r–5.md?p=c-4) affecting such development, but shall cause 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. - (c) **Assumption of project by United States after expiration of license—** Whenever, after notice and opportunity for hearing, the [Commission](/usc/16/410cc–1.md?p=3) determines that the United States should exercise its right upon or after the expiration of any license to take over any [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) for public purposes, the [Commission](/usc/16/410cc–1.md?p=3) shall not issue a new license to the original [licensee](/usc/16/796.md?p=5) or to a new [licensee](/usc/16/796.md?p=5) but shall submit its recommendation to Congress together with such information as it may consider appropriate. # §801. Transfer of license; obligations of transferee No voluntary transfer of any license, or of the rights thereunder granted, shall be made without the written approval of the [commission](/usc/16/410cc–1.md?p=3); and any successor or assign of the rights of such [licensee](/usc/16/796.md?p=5), 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](/usc/16/796.md?p=5) 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 [licensee](/usc/16/796.md?p=5) under this chapter: Provided, That a mortgage or [trust](/usc/16/450ss–1.md?p=4) deed or judicial sales made thereunder or under tax sales shall not be deemed voluntary transfers within the meaning of this section. # §802. Information to accompany application for license; landowner notification - (a) Each applicant for a license under this chapter shall submit to the [commission](/usc/16/410cc–1.md?p=3)— - (1) Such [maps](/usc/16/430f–7.md?p=1), plans, specifications, and estimates of cost as may be required for a full understanding of the proposed [project](/usc/16/410r–5.md?p=c-4). Such [maps](/usc/16/430f–7.md?p=1), plans, and specifications when approved by the [commission](/usc/16/410cc–1.md?p=3) shall be made a part of the license; and thereafter no change shall be made in said [maps](/usc/16/430f–7.md?p=1), plans, or specifications until such changes shall have been approved and made a part of such license by the [commission](/usc/16/410cc–1.md?p=3). - (2) Satisfactory evidence that the applicant has complied with the requirements of the laws of the [State](/usc/16/6456.md?p=2) or [States](/usc/16/544.md?p=r) within which the proposed [project](/usc/16/410r–5.md?p=c-4) 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 chapter. - (3) [^1] Such additional information as the [commission](/usc/16/410cc–1.md?p=3) may require. - (b) Upon the filing of any application for a license (other than a license under [section 808 of this title](/usc/16/808.md)) the applicant shall make a good faith effort to notify each of the following by certified mail: - (1) Any [person](/usc/16/450rr–1.md?p=b) who is an [owner](/usc/16/429b–3.md?p=4) of record of any interest in the property within the bounds of the [project](/usc/16/410r–5.md?p=c-4). - (2) Any Federal, [State](/usc/16/6456.md?p=2), municipal or other local governmental agency likely to be interested in or affected by such application. # §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; recommendations for proposed terms and conditions—** - (1) That the [project](/usc/16/410r–5.md?p=c-4) adopted, including the [maps](/usc/16/430f–7.md?p=1), plans, and specifications, shall be such as in the judgment of the [Commission](/usc/16/410cc–1.md?p=3) 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 habitat), and for other beneficial public [uses](/usc/16/410hhh–1.md?p=10), including irrigation, flood control, water supply, and recreational and other purposes referred to in [section 797(e) of this title](/usc/16/797.md?p=e)[^1] if necessary in order to secure such plan the [Commission](/usc/16/410cc–1.md?p=3) shall have authority to require the modification of any [project](/usc/16/410r–5.md?p=c-4) and of the plans and specifications of the [project](/usc/16/410r–5.md?p=c-4) works before approval. - (2) In order to ensure that the [project](/usc/16/410r–5.md?p=c-4) adopted will be best adapted to the comprehensive plan described in [paragraph (1)](#a-1), the [Commission](/usc/16/410cc–1.md?p=3) shall consider each of the following: - (A) The extent to which the [project](/usc/16/410r–5.md?p=c-4) is consistent with a comprehensive plan (where one exists) for improving, developing, or conserving a waterway or waterways affected by the [project](/usc/16/410r–5.md?p=c-4) that is prepared by— - (i) an agency established pursuant to Federal law that has the authority to prepare such a plan; or - (ii) the [State](/usc/16/6456.md?p=2) in which the facility is or will be located. - (B) The recommendations of Federal and [State](/usc/16/6456.md?p=2) agencies exercising administration over flood control, navigation, irrigation, recreation, cultural and other relevant [resources](/usc/16/410hhh–1.md?p=8) of the [State](/usc/16/6456.md?p=2) in which the [project](/usc/16/410r–5.md?p=c-4) is located, and the recommendations (including fish and wildlife recommendations) of [Indian tribes](/usc/16/544.md?p=g) affected by the [project](/usc/16/410r–5.md?p=c-4). - (C) In the case of a [State](/usc/16/6456.md?p=2) or municipal applicant, or an applicant which is primarily engaged in the generation or sale of electric power (other than electric power solely from cogeneration facilities or small power production facilities), the electricity consumption efficiency improvement [program](/usc/16/460ss–6.md?p=1) of the applicant, including its plans, performance and capabilities for encouraging or assisting its customers to conserve electricity cost-effectively, taking into account the published policies, restrictions, and requirements of relevant [State](/usc/16/6456.md?p=2) regulatory authorities applicable to such applicant. - (3) Upon receipt of an application for a license, the [Commission](/usc/16/410cc–1.md?p=3) shall solicit recommendations from the agencies and [Indian tribes](/usc/16/544.md?p=g) identified in subparagraphs [(A)](#a-2-A) and [(B)](#a-2-B) of paragraph (2) for proposed terms and conditions for the [Commission](/usc/16/410cc–1.md?p=3)’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](/usc/16/410r–5.md?p=c-2) not in conformity with the approved plans shall be made to any dam or other [project](/usc/16/410r–5.md?p=c-4) works constructed hereunder of an installed capacity in excess of two thousand horsepower without the prior approval of the [Commission](/usc/16/410cc–1.md?p=3); and any emergency alteration or [addition](/usc/16/410r–5.md?p=c-2) so made shall thereafter be subject to such modification and change as the [Commission](/usc/16/410cc–1.md?p=3) may direct. - (c) **Maintenance and repair of project works; liability of licensee for damages—** That the [licensee](/usc/16/796.md?p=5) shall maintain the [project](/usc/16/410r–5.md?p=c-4) works in a condition of repair adequate for the purposes of navigation 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](/usc/16/410cc–1.md?p=3) may from time to time prescribe for the protection of life, health, and property. Each [licensee](/usc/16/796.md?p=5) hereunder shall be liable for all damages occasioned to the property of others by the construction, maintenance, or operation of the [project](/usc/16/410r–5.md?p=c-4) works or of the works appurtenant 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, accumulated in excess of a specified reasonable rate of return upon the net investment of a [licensee](/usc/16/796.md?p=5) in any [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) under license, the [licensee](/usc/16/796.md?p=5) shall establish and maintain amortization reserves, which reserves shall, in the discretion of the [Commission](/usc/16/410cc–1.md?p=3), be held until the termination 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](/usc/16/808.md), 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; maximum rates; application; review and report to Congress—** - (1) That the [licensee](/usc/16/796.md?p=5) shall pay to the United States reasonable annual charges in an amount to be fixed by the [Commission](/usc/16/410cc–1.md?p=3) 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](/usc/16/6456.md?p=2) 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 responsibilities under this subchapter; for recompensing it for the use, occupancy, and enjoyment of its lands or other property; and for the expropriation to the Government of excessive profits until the respective [States](/usc/16/544.md?p=r) shall make provision for preventing excessive profits or for the expropriation thereof to themselves, or until the period of amortization as herein provided is reached, and in fixing such charges the [Commission](/usc/16/410cc–1.md?p=3) 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](/usc/16/410cc–1.md?p=3) as conditions may require: Provided, That, subject to annual appropriations Acts, the portion of such annual charges imposed by the [Commission](/usc/16/410cc–1.md?p=3) under this subsection to cover the reasonable and necessary costs of such agencies shall be available to such agencies (in [addition](/usc/16/410r–5.md?p=c-2) to other [funds](/usc/16/1421h.md?p=2) appropriated for such purposes) solely 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](/usc/16/410cc–1.md?p=3) shall, subject to the approval of the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior in the case of such dams or structures in reclamation [projects](/usc/16/410r–5.md?p=c-4) 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](/usc/25/5123.md), fix a reasonable annual charge for the use thereof, and such charges may with like approval be readjusted by the [Commission](/usc/16/410cc–1.md?p=3) at the end of twenty years after the [project](/usc/16/410r–5.md?p=c-4) 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](/usc/16/544.md?p=r) or [municipalities](/usc/16/2708.md?p=a-7) 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](/usc/16/6456.md?p=2) or [municipality](/usc/16/2708.md?p=a-7) for [State](/usc/16/6456.md?p=2) or municipal purposes, except that as to [projects](/usc/16/410r–5.md?p=c-4) constructed or to be constructed by [States](/usc/16/544.md?p=r) or [municipalities](/usc/16/2708.md?p=a-7) primarily designed to provide or improve navigation, licenses therefor shall be issued without charge; and that licenses for the development, transmission, or distribution of power for domestic, mining, or other beneficial use in [projects](/usc/16/410r–5.md?p=c-4) 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](/usc/16/410cc–1.md?p=3): Provided however, That no charge shall be assessed for the use of any Government dam or structure by any [licensee](/usc/16/796.md?p=5) if, before January 1, 1985, the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior has entered into a contract with such [licensee](/usc/16/796.md?p=5) that meets each of the following requirements: - (A) The contract covers one or more [projects](/usc/16/410r–5.md?p=c-4) for which a license was issued by the [Commission](/usc/16/410cc–1.md?p=3) before January 1, 1985. - (B) The contract contains provisions specifically providing each of the following: - (i) A powerplant may be built by the [licensee](/usc/16/796.md?p=5) utilizing irrigation facilities constructed by the United States. - (ii) The powerplant shall remain in the exclusive control, possession, and ownership of the [licensee](/usc/16/796.md?p=5) concerned. - (iii) All revenue from the powerplant and from the use, sale, or disposal of electric energy from the powerplant shall be, and remain, the property of such [licensee](/usc/16/796.md?p=5). - (C) The contract is an amendatory, supplemental 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 Irrigation 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](/usc/16/410r–5.md?p=c-4) covered by a contract referred to in this paragraph only during the term of such contract unless otherwise provided by subsequent Act of Congress. In the event an overpayment of any charge due under this section shall be made by a [licensee](/usc/16/796.md?p=5), the [Commission](/usc/16/410cc–1.md?p=3) 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 readjusted) by the [Commission](/usc/16/410cc–1.md?p=3) under [paragraph (1)](#e-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](/usc/16/410r–5.md?p=c-4) produces in any year, 1½ 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 energy the [project](/usc/16/410r–5.md?p=c-4) produces over 80 gigawatt-hours in any year. Except as provided in [subsection (f)](#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)](#e-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 involved; 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](/usc/16/410cc–1.md?p=3) shall review the appropriateness of the annual charge limitations 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](/usc/16/796.md?p=5) hereunder is directly benefited by the construction work of another [licensee](/usc/16/796.md?p=5), a permittee, or of the United States of a storage reservoir or other headwater improvement, the [Commission](/usc/16/410cc–1.md?p=3) shall require as a condition of the license that the [licensee](/usc/16/796.md?p=5) so benefited shall reimburse the [owner](/usc/16/429b–3.md?p=4) of such reservoir or other improvements for such part of the annual charges for interest, maintenance, and depreciation thereon as the [Commission](/usc/16/410cc–1.md?p=3) may deem equitable. The proportion of such charges to be paid by any [licensee](/usc/16/796.md?p=5) shall be determined by the [Commission](/usc/16/410cc–1.md?p=3). The [licensees](/usc/16/796.md?p=5) or permittees affected shall pay to the United States the cost of making such determination as fixed by the [Commission](/usc/16/410cc–1.md?p=3). Whenever such reservoir or other improvement is constructed by the United States the [Commission](/usc/16/410cc–1.md?p=3) shall assess similar charges against any [licensee](/usc/16/796.md?p=5) directly benefited thereby, and any amount so assessed shall be paid into the Treasury of the United States, to be reserved and appropriated as a part of the special [fund](/usc/16/1421h.md?p=2) for headwater improvements as provided in [section 810 of this title](/usc/16/810.md). Whenever any power [project](/usc/16/410r–5.md?p=c-4) not under license is benefited by the construction work of a [licensee](/usc/16/796.md?p=5) or permittee, the United States or any agency thereof, the [Commission](/usc/16/410cc–1.md?p=3), after notice to the [owner](/usc/16/429b–3.md?p=4) or [owners](/usc/16/429b–3.md?p=4) of such unlicensed [project](/usc/16/410r–5.md?p=c-4), shall determine and fix a reasonable and equitable annual charge to be paid to the [licensee](/usc/16/796.md?p=5) or permittee on account of such benefits, or to the United States if it be the [owner](/usc/16/429b–3.md?p=4) of such headwater improvement. - (g) **Conditions in discretion of commission—** Such other conditions not inconsistent with the provisions of this chapter as the [commission](/usc/16/410cc–1.md?p=3) may require. - (h) **Monopolistic combinations; prevention or minimization of anticompetitive conduct; action 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 prohibited. - (2) That conduct under the license that: (A) results in the contravention of the policies expressed in the antitrust laws; and (B) is not otherwise justified by the public interest considering regulatory policies expressed in other applicable law (including but not limited to those contained in subchapter II of this chapter) shall be prevented or adequately minimized by means 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](/usc/16/410cc–1.md?p=3) shall refuse to issue any license to the applicant for the [project](/usc/16/410r–5.md?p=c-4) and, in the case of an existing [project](/usc/16/410r–5.md?p=c-4), shall take appropriate action to provide thereafter for the operation and maintenance of the affected [project](/usc/16/410r–5.md?p=c-4) and for the issuing of a new license in accordance with [section 808 of this title](/usc/16/808.md). - (i) **Waiver of conditions—** In issuing licenses for a minor part only of a complete [project](/usc/16/410r–5.md?p=c-4), or for a complete [project](/usc/16/410r–5.md?p=c-4) of not more than two thousand horsepower installed capacity, the [Commission](/usc/16/410cc–1.md?p=3) may in its discretion waive such conditions, provisions, and requirements of this subchapter, except the license period of fifty years, as it may deem to be to the public interest to waive under the circumstances: 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 recommendations; 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, operation, and management of the [project](/usc/16/410r–5.md?p=c-4), each license issued under this subchapter shall include conditions for such protection, mitigation, and enhancement. Subject to [paragraph (2)](#j-2), such conditions shall be based on recommendations received pursuant to the Fish and Wildlife Coordination Act ([16 U.S.C. 661](/usc/16/661.md) et seq.) from the National Marine [Fisheries](/usc/16/1383a.md?p=o-1) Service, the United States Fish and Wildlife Service, and [State](/usc/16/6456.md?p=2) fish and wildlife agencies. - (2) Whenever the [Commission](/usc/16/410cc–1.md?p=3) believes that any recommendation referred to in [paragraph (1)](#j-1) may be inconsistent with the purposes and requirements of this subchapter or other applicable law, the [Commission](/usc/16/410cc–1.md?p=3) and the agencies referred to in [paragraph (1)](#j-1) shall attempt to resolve any such inconsistency, giving due weight to the recommendations, expertise, and statutory responsibilities of such agencies. If, after such attempt, the [Commission](/usc/16/410cc–1.md?p=3) does not adopt in whole or in part a recommendation of any such agency, the [Commission](/usc/16/410cc–1.md?p=3) shall publish each of the following findings (together with a statement of the basis for each of the findings): - (A) A finding that adoption of such recommendation is inconsistent with the purposes and requirements of this subchapter or with other applicable provisions of law. - (B) A finding that the conditions selected by the [Commission](/usc/16/410cc–1.md?p=3) comply with the requirements of [paragraph (1)](#j-1). [Subsection (i)](#i) shall not apply to the conditions required under this subsection. # §804. Project works affecting navigable waters; requirements insertable in license If the dam or other [project](/usc/16/410r–5.md?p=c-4) works are to be constructed across, along, or in any of the navigable waters of the United States, the [commission](/usc/16/410cc–1.md?p=3) may, insofar as it deems the same reasonably necessary to promote the present and future needs of navigation and consistent with a reasonable investment cost to the [licensee](/usc/16/796.md?p=5), include in the license any one or more of the following provisions or requirements: - (a) That such [licensee](/usc/16/796.md?p=5) shall, to the extent necessary to [preserve](/usc/16/410hhh–1.md?p=7) and improve navigation facilities, 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 accordance with plans and specifications approved by the Chief of Engineers and the [Secretary](/usc/16/410r–5.md?p=c-1) 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 construction at the expense of the [licensee](/usc/16/796.md?p=5), then whenever the United States shall desire to complete such navigation facilities the [licensee](/usc/16/796.md?p=5) 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 structures, and permit such control of pools as may be required to complete such navigation facilities. - (c) That such [licensee](/usc/16/796.md?p=5) shall furnish free of cost to the United States power for the operation of such navigation facilities, whether constructed by the [licensee](/usc/16/796.md?p=5) or by the United States. # §805. Participation by Government in costs of locks, etc. Whenever application is filed for a [project](/usc/16/410r–5.md?p=c-4) hereunder involving navigable waters of the United States, and the [commission](/usc/16/410cc–1.md?p=3) 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](/usc/16/804.md), the [commission](/usc/16/410cc–1.md?p=3) may grant the application with the provision to be expressed in the license that the [licensee](/usc/16/796.md?p=5) will install the necessary 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](/usc/16/410r–5.md?p=c-4) to be prepared, with estimates of cost of the power development and of the navigation 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. # §806. Time limit for construction of project works; extension of time; termination or revocation of licenses for delay The [licensee](/usc/16/796.md?p=5) shall commence the construction of the [project](/usc/16/410r–5.md?p=c-4) 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 construction, and shall within the time fixed in the license complete and put into operation such part of the ultimate development as the [commission](/usc/16/410cc–1.md?p=3) shall deem necessary to supply the reasonable 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](/usc/16/410cc–1.md?p=3) may direct, so as to supply adequately the reasonable market demands until such development shall have been completed. The periods for the commencement of construction may be extended for not more than 8 additional years, and the period for the completion of construction carried on in good faith and with reasonable diligence may be extended by the [commission](/usc/16/410cc–1.md?p=3) when not incompatible with the public interests. In case the [licensee](/usc/16/796.md?p=5) shall not commence actual construction of the [project](/usc/16/410r–5.md?p=c-4) works, or of any specified part thereof, within the time prescribed in the license or as extended by the [commission](/usc/16/410cc–1.md?p=3), then, after due notice given, the license shall, as to such [project](/usc/16/410r–5.md?p=c-4) works or part thereof, be terminated upon written order of the [commission](/usc/16/410cc–1.md?p=3). In case the construction of the [project](/usc/16/410r–5.md?p=c-4) works, or of any specified part thereof, has been begun but not completed within the time prescribed in the license, or as extended by the [commission](/usc/16/410cc–1.md?p=3), then the Attorney General, upon the request of the [commission](/usc/16/410cc–1.md?p=3), shall [institute](/usc/16/6703.md?p=4) proceedings in equity in the district court of the United States for the district in which any part of the [project](/usc/16/410r–5.md?p=c-4) is situated for the revocation of said license, the sale of the works constructed, and such other equitable relief as the case may demand, as provided for in [section 820 of this title](/usc/16/820.md). # §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 writing from the [commission](/usc/16/410cc–1.md?p=3) the United States shall have the right upon or after the expiration of any license to take over and thereafter to maintain and operate any [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) as defined in [section 796 of this title](/usc/16/796.md), and covered in whole or in part by the license, or the right to take over upon mutual agreement with the [licensee](/usc/16/796.md?p=5) all property owned and held by the [licensee](/usc/16/796.md?p=5) then valuable and serviceable in the development, transmission, or distribution of power and which is then dependent for its usefulness upon the continuance of the license, together with any lock or locks or other aids to navigation constructed at the expense of the [licensee](/usc/16/796.md?p=5), upon the condition that before taking possession it shall pay the net investment of the [licensee](/usc/16/796.md?p=5) in the [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) taken, not to exceed the fair value of the property taken, plus such reasonable damages, if any, to property of the [licensee](/usc/16/796.md?p=5) valuable, serviceable, and dependent 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](/usc/16/796.md?p=5) with the approval of the [Commission](/usc/16/410cc–1.md?p=3). The net investment of the [licensee](/usc/16/796.md?p=5) in the [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) so taken and the amount of such severance damages, if any, shall be determined by the [Commission](/usc/16/410cc–1.md?p=3) after notice and opportunity for hearing. Such net investment shall not include or be affected by the value of any lands, rights-of-way, or other property of the United States licensed by the [Commission](/usc/16/410cc–1.md?p=3) 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](/usc/16/620e.md?p=1) by the [licensee](/usc/16/796.md?p=5): Provided, That the right of the United States or any [State](/usc/16/6456.md?p=2) or [municipality](/usc/16/2708.md?p=a-7) to take over, maintain, and operate any [project](/usc/16/410r–5.md?p=c-4) licensed under this chapter at any time by condemnation proceedings upon payment of just compensation is expressly reserved. - (b) **Relicensing proceedings; Federal agency recommendations of take over by Government; stay of orders for new licenses; termination of stay; notice to Congress—** In any relicensing proceeding before the [Commission](/usc/16/410cc–1.md?p=3) any Federal department or agency may timely recommend, pursuant to such rules as the [Commission](/usc/16/410cc–1.md?p=3) shall prescribe, that the United States exercise its right to take over any [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4). Thereafter, the [Commission](/usc/16/410cc–1.md?p=3), if its[^1] does not itself recommend such action pursuant to the provisions of [section 800(c) of this title](/usc/16/800.md?p=c), shall upon motion of such department or agency stay the effective date of any order issuing a license, except an order issuing an annual license in accordance with the proviso of [section 808(a) of this title](/usc/16/808.md?p=a), for two years after the date of issuance of such order, after which period the stay shall terminate, unless terminated earlier upon motion of the department or agency requesting the stay or by action of Congress. The [Commission](/usc/16/410cc–1.md?p=3) shall notify the Congress of any stay granted pursuant to this subsection. # §808. New licenses and renewals - (a) **Relicensing procedures; terms and conditions; issuance to applicant with proposal best adapted to serve public interest; factors considered—** - (1) If the United States does not, at the expiration of the existing license, exercise its right to take over, maintain, and operate any [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) of the [licensee](/usc/16/796.md?p=5), as provided in [section 807 of this title](/usc/16/807.md), the [commission](/usc/16/410cc–1.md?p=3) is authorized to issue a new license to the existing [licensee](/usc/16/796.md?p=5) upon such terms and conditions as may be authorized or required under the then existing laws and regulations, or to issue a new license under said terms and conditions to a new [licensee](/usc/16/796.md?p=5), which license may cover any [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) covered by the existing license, and shall be issued on the condition that the new [licensee](/usc/16/796.md?p=5) shall, before taking possession of such [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4), pay such amount, and assume such contracts as the United States is required to do in the manner specified in [section 807 of this title](/usc/16/807.md): Provided, That in the event the United States does not exercise the right to take over or does not issue a license to a new [licensee](/usc/16/796.md?p=5), or issue a new license to the existing [licensee](/usc/16/796.md?p=5), upon reasonable terms, then the [commission](/usc/16/410cc–1.md?p=3) shall issue from year to year an annual license to the then [licensee](/usc/16/796.md?p=5) under the terms and conditions of the existing license until the property is taken over or a new license is issued as aforesaid. - (2) Any new license issued under this section shall be issued to the applicant having the final [proposal](/usc/16/7302.md?p=3) which the [Commission](/usc/16/410cc–1.md?p=3) determines is best adapted to serve the public interest, except that in making this determination the [Commission](/usc/16/410cc–1.md?p=3) shall ensure that insignificant differences with regard to [subparagraphs (A) through (G)](#a-A..a-G) of this paragraph between competing applications are not determinative and shall not result in the transfer of a [project](/usc/16/410r–5.md?p=c-4). In making a determination under this section (whether or not more than one application is submitted for the [project](/usc/16/410r–5.md?p=c-4)), the [Commission](/usc/16/410cc–1.md?p=3) shall, in [addition](/usc/16/410r–5.md?p=c-2) to the requirements of [section 803 of this title](/usc/16/803.md), consider (and explain such consideration in writing) each of the following: - (A) The plans and abilities of the applicant to comply with (i) the articles, terms, and conditions of any license issued to it and (ii) other applicable provisions of this subchapter. - (B) The plans of the applicant to manage, operate, and maintain the [project](/usc/16/410r–5.md?p=c-4) safely. - (C) The plans and abilities of the applicant to operate and maintain the [project](/usc/16/410r–5.md?p=c-4) in a manner most likely to provide efficient and reliable electric service. - (D) The need of the applicant over the short and long term for the electricity generated by the [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) to serve its customers, including, among other relevant considerations, the reasonable costs and reasonable availability of alternative sources of power, taking into consideration [conservation](/usc/16/6456.md?p=2) and other relevant factors and taking into consideration the effect on the provider (including its customers) of the alternative source of power, the effect on the applicant’s operating and load characteristics, the effect on communities served or to be served by the [project](/usc/16/410r–5.md?p=c-4), and in the case of an applicant using power for the applicant’s own industrial facility and related operations, the effect on the operation and efficiency of such facility or related operations, its workers, and the related community. In the case of an applicant that is an Indian tribe applying for a license for a [project](/usc/16/410r–5.md?p=c-4) located on the tribal reservation, a statement of the need of such tribe for electricity generated by the [project](/usc/16/410r–5.md?p=c-4) to foster the purposes of the reservation may be included. - (E) The existing and planned transmission services of the applicant, taking into consideration [system](/usc/16/668ee.md?p=14) reliability, costs, and other applicable economic and technical factors. - (F) Whether the plans of the applicant will be achieved, to the greatest extent possible, in a cost effective manner. - (G) Such other factors as the [Commission](/usc/16/410cc–1.md?p=3) may deem relevant, except that the terms and conditions in the license for the protection, mitigation, or enhancement of fish and wildlife [resources](/usc/16/410hhh–1.md?p=8) affected by the development, operation, and management of the [project](/usc/16/410r–5.md?p=c-4) shall be determined in accordance with [section 803 of this title](/usc/16/803.md), and the plans of an applicant concerning fish and wildlife shall not be subject to a comparative evaluation under this subsection. - (3) In the case of an application by the existing [licensee](/usc/16/796.md?p=5), the [Commission](/usc/16/410cc–1.md?p=3) shall also take into consideration each of the following: - (A) The existing [licensee](/usc/16/796.md?p=5)’s record of compliance with the terms and conditions of the existing license. - (B) The actions taken by the existing [licensee](/usc/16/796.md?p=5) related to the [project](/usc/16/410r–5.md?p=c-4) which affect the public. - (b) **Notification of intention regarding renewal; public availability of documents; notice to public and Federal agencies; identification of Federal or Indian lands included; additional information required—** - (1) Each existing [licensee](/usc/16/796.md?p=5) shall notify the [Commission](/usc/16/410cc–1.md?p=3) whether the [licensee](/usc/16/796.md?p=5) intends to file an application for a new license or not. Such notice shall be submitted at least 5 years before the expiration of the existing license. - (2) At the time notice is provided under [paragraph (1)](#b-1), the existing [licensee](/usc/16/796.md?p=5) shall make each of the following reasonably available to the public for inspection at the offices of such [licensee](/usc/16/796.md?p=5): current [maps](/usc/16/430f–7.md?p=1), drawings, data, and such other information as the [Commission](/usc/16/410cc–1.md?p=3) shall, by rule, require regarding the construction and operation of the licensed [project](/usc/16/410r–5.md?p=c-4). Such information shall include, to the greatest extent practicable pertinent energy [conservation](/usc/16/6456.md?p=2), recreation, fish and wildlife, and other environmental information. Copies of the information shall be made available at reasonable costs of reproduction. Within 180 days after October 16, 1986, the [Commission](/usc/16/410cc–1.md?p=3) shall promulgate regulations regarding the information to be provided under this paragraph. - (3) Promptly following receipt of notice under [paragraph (1)](#b-1), the [Commission](/usc/16/410cc–1.md?p=3) shall provide public notice of whether an existing [licensee](/usc/16/796.md?p=5) intends to file or not to file an application for a new license. The [Commission](/usc/16/410cc–1.md?p=3) shall also promptly notify the National Marine [Fisheries](/usc/16/1383a.md?p=o-1) Service and the United States Fish and Wildlife Service, and the appropriate [State](/usc/16/6456.md?p=2) fish and wildlife agencies. - (4) The [Commission](/usc/16/410cc–1.md?p=3) shall require the applicant to identify any Federal or Indian lands included in the [project](/usc/16/410r–5.md?p=c-4) boundary, together with a statement of the annual fees paid as required by this subchapter for such lands, and to provide such additional information as the [Commission](/usc/16/410cc–1.md?p=3) deems appropriate to carry out the [Commission](/usc/16/410cc–1.md?p=3)’s responsibilities under this section. - (c) **Time of filing application; consultation and participation in studies with fish and wildlife agencies; notice to applicants; adjustment of time periods—** - (1) Each application for a new license pursuant to this section shall be filed with the [Commission](/usc/16/410cc–1.md?p=3) at least 24 months before the expiration of the term of the existing license. Each applicant shall consult with the fish and wildlife agencies referred to in [subsection (b)](#b) and, as appropriate, conduct studies with such agencies. Within 60 days after the statutory deadline for the submission of applications, the [Commission](/usc/16/410cc–1.md?p=3) shall issue a notice establishing expeditious procedures for relicensing and a deadline for submission of final amendments, if any, to the application. - (2) The time periods specified in this subsection and in [subsection (b)](#b) shall be adjusted, in a manner that achieves the objectives of this section, by the [Commission](/usc/16/410cc–1.md?p=3) by rule or order with respect to existing [licensees](/usc/16/796.md?p=5) who, by reason of the expiration dates of their licenses, are unable to comply with a specified time period. - (d) **Adequacy of transmission facilities; provision of services to successor by existing licensee; tariff; final order; modification, extension or termination of order—** - (1) In evaluating applications for new licenses pursuant to this section, the [Commission](/usc/16/410cc–1.md?p=3) shall not consider whether an applicant has adequate transmission facilities with regard to the [project](/usc/16/410r–5.md?p=c-4). - (2) When the [Commission](/usc/16/410cc–1.md?p=3) issues a new license (pursuant to this section) to an applicant which is not the existing [licensee](/usc/16/796.md?p=5) of the [project](/usc/16/410r–5.md?p=c-4) and finds that it is not feasible for the new [licensee](/usc/16/796.md?p=5) to utilize the energy from such [project](/usc/16/410r–5.md?p=c-4) without provision by the existing [licensee](/usc/16/796.md?p=5) of reasonable services, including transmission services, the [Commission](/usc/16/410cc–1.md?p=3) shall give notice to the existing [licensee](/usc/16/796.md?p=5) and the new [licensee](/usc/16/796.md?p=5) to immediately enter into negotiations for such services and the costs demonstrated by the existing [licensee](/usc/16/796.md?p=5) as being related to the provision of such services. It is the intent of the Congress that such negotiations be carried out in good faith and that a timely agreement be reached between the parties in order to facilitate the transfer of the license by the date established when the [Commission](/usc/16/410cc–1.md?p=3) issued the new license. If such parties do not notify the [Commission](/usc/16/410cc–1.md?p=3) that within the time established by the [Commission](/usc/16/410cc–1.md?p=3) in such notice (and if appropriate, in the judgment of the [Commission](/usc/16/410cc–1.md?p=3), one 45-day extension thereof), a mutually satisfactory arrangement for such services that is consistent with the provisions of this chapter has been executed, the [Commission](/usc/16/410cc–1.md?p=3) shall order the existing [licensee](/usc/16/796.md?p=5) to file (pursuant to [section 824d of this title](/usc/16/824d.md)) with the [Commission](/usc/16/410cc–1.md?p=3) a tariff, subject to refund, ensuring such services beginning on the date of transfer of the [project](/usc/16/410r–5.md?p=c-4) and including just and reasonable rates and reasonable terms and conditions. After notice and opportunity for a hearing, the [Commission](/usc/16/410cc–1.md?p=3) shall issue a final order adopting or modifying such tariff for such services at just and reasonable rates in accordance with [section 824d of this title](/usc/16/824d.md) and in accordance with reasonable terms and conditions. The [Commission](/usc/16/410cc–1.md?p=3), in issuing such order, shall ensure the services necessary for the full and efficient utilization and benefits for the license term of the electric energy from the [project](/usc/16/410r–5.md?p=c-4) by the new [licensee](/usc/16/796.md?p=5) in accordance with the license and this subchapter, except that in issuing such order the [Commission](/usc/16/410cc–1.md?p=3)— - (A) shall not compel the existing [licensee](/usc/16/796.md?p=5) to enlarge generating facilities, transmit electric energy other than to the distribution [system](/usc/16/668ee.md?p=14) (providing service to customers) of the new [licensee](/usc/16/796.md?p=5) identified as of the date one day preceding the date of license award, or require the [acquisition](/usc/16/620e.md?p=1) of new facilities, including the upgrading of existing facilities other than any reasonable enhancement or improvement of existing facilities controlled by the existing [licensee](/usc/16/796.md?p=5) (including any [acquisition](/usc/16/620e.md?p=1) related to such enhancement or improvement) necessary to carry out the purposes of this paragraph; - (B) shall not adversely affect the continuity and reliability of service to the customers of the existing [licensee](/usc/16/796.md?p=5); - (C) shall not adversely affect the operational integrity of the transmission and electric [systems](/usc/16/668ee.md?p=14) of the existing [licensee](/usc/16/796.md?p=5); - (D) shall not cause any reasonably quantifiable increase in the jurisdictional rates of the existing [licensee](/usc/16/796.md?p=5); and - (E) shall not order any entity other than the existing [licensee](/usc/16/796.md?p=5) to provide transmission or other services. Such order shall be for such period as the [Commission](/usc/16/410cc–1.md?p=3) deems appropriate, not to exceed the term of the license. At any time, the [Commission](/usc/16/410cc–1.md?p=3), upon its own motion or upon a petition by the existing or new [licensee](/usc/16/796.md?p=5) and after notice and opportunity for a hearing, may modify, extend, or terminate such order. - (e) **License term on relicensing—** Except for an annual license, any license issued by the [Commission](/usc/16/410cc–1.md?p=3) under this section shall be for a term which the [Commission](/usc/16/410cc–1.md?p=3) determines to be in the public interest but not less than 30 years, nor more than 50 years, from the date on which the license is issued. - (f) **Nonpower use licenses; recordkeeping—** In issuing any licenses under this section except an annual license, the [Commission](/usc/16/410cc–1.md?p=3), on its own motion or upon application of any [licensee](/usc/16/796.md?p=5), [person](/usc/16/450rr–1.md?p=b), [State](/usc/16/6456.md?p=2), [municipality](/usc/16/2708.md?p=a-7), or [State commission](/usc/16/796.md?p=21), after notice to each [State commission](/usc/16/796.md?p=21) and [licensee](/usc/16/796.md?p=5) affected, and after opportunity for hearing, whenever it finds that in conformity with a comprehensive plan for improving or developing a waterway or waterways for beneficial public [uses](/usc/16/410hhh–1.md?p=10) all or part of any licensed [project](/usc/16/410r–5.md?p=c-4) should no longer be used or adapted for use for power purposes, may license all or part of the [project](/usc/16/410r–5.md?p=c-4) works for nonpower use. A license for nonpower use shall be issued to a new [licensee](/usc/16/796.md?p=5) only on the condition that the new [licensee](/usc/16/796.md?p=5) shall, before taking possession of the facilities encompassed thereunder, pay such amount and assume such contracts as the United States is required to do, in the manner specified in [section 807 of this title](/usc/16/807.md). Any license for nonpower use shall be a temporary license. Whenever, in the judgment of the [Commission](/usc/16/410cc–1.md?p=3), a [State](/usc/16/6456.md?p=2), [municipality](/usc/16/2708.md?p=a-7), interstate agency, or another Federal agency is authorized and willing to assume regulatory supervision of the lands and facilities included under the nonpower license and does so, the [Commission](/usc/16/410cc–1.md?p=3) shall thereupon terminate the license. Consistent with the provisions of subchapter IV of this chapter, every [licensee](/usc/16/796.md?p=5) for nonpower use shall keep such accounts and file such annual and other periodic or special reports concerning the removal, alteration, nonpower use, or other disposition of any [project](/usc/16/410r–5.md?p=c-4) works or parts thereof covered by the nonpower use license as the [Commission](/usc/16/410cc–1.md?p=3) may by rules and regulations or order prescribe as necessary or appropriate. # §809. Temporary use by Government of project works for national safety; compensation for use When in the opinion of the President of the United States, evidenced by a written order addressed to the holder of any license under this chapter, the safety of the United States demands it, the United States shall have the right to enter upon and take possession of any [project](/usc/16/410r–5.md?p=c-4) or part thereof, constructed, maintained, or operated under said license, for the purpose of manufacturing nitrates, explosives, or munitions of war, or for any other purpose involving the safety of the United States, to retain possession, management, and control thereof for such length of time as may appear to the President to be necessary to accomplish said purposes, and then to restore possession and control to the party or parties entitled thereto; and in the event that the United States shall exercise such right it shall pay to the party or parties entitled thereto just and fair compensation for the use of said property as may be fixed by the [commission](/usc/16/410cc–1.md?p=3) upon the basis of a reasonable profit in time of peace, and the cost of restoring said property to as good condition as existed at the time of the taking over thereof, less the reasonable value of any improvements that may be made thereto by the United States and which are valuable and serviceable to the [licensee](/usc/16/796.md?p=5). # §810. Disposition of charges arising from licenses - (a) **Receipts from charges—** All proceeds from any Indian reservation shall be placed to the credit of the Indians of such reservation. All other charges arising from licenses hereunder, except charges fixed by the [Commission](/usc/16/410cc–1.md?p=3) for the purpose of reimbursing the United States for the costs of administration of this subchapter, shall be paid into the Treasury of the United States, subject to the following distribution: 12½ per centum thereof is hereby appropriated to be paid into the Treasury of the United States and credited to “Miscellaneous receipts”; 50 per centum of the charges arising from licenses hereunder for the occupancy and use of [public lands](/usc/16/620e.md?p=7) and [national forests](/usc/16/5207.md?p=3) shall be paid into, reserved, and appropriated as a part of the reclamation [fund](/usc/16/1421h.md?p=2) created by the Act of Congress known as the Reclamation Act, approved June 17, 1902; and 37½ per centum of the charges arising from licenses hereunder for the occupancy and use of [national forests](/usc/16/5207.md?p=3) and [public lands](/usc/16/620e.md?p=7) from development within the boundaries of any [State](/usc/16/6456.md?p=2) shall be paid by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Treasury to such [State](/usc/16/6456.md?p=2); and 50 per centum of the charges arising from all other licenses hereunder is reserved and appropriated as a special [fund](/usc/16/1421h.md?p=2) in the Treasury to be expended under the direction of the [Secretary](/usc/16/410r–5.md?p=c-1) of the Army in the maintenance and operation of dams and other navigation structures owned by the United States or in the construction, maintenance, or operation of headwater or other improvements of navigable waters of the United States. The proceeds of charges made by the [Commission](/usc/16/410cc–1.md?p=3) for the purpose of reimbursing the United States for the costs of the administration of this subchapter shall be paid into the Treasury of the United States and credited to miscellaneous receipts. - (b) **Delinquent payments—** In case of delinquency on the part of any [licensee](/usc/16/796.md?p=5) in the payment of annual charges a penalty of 5 per centum of the total amount so delinquent may be added to the total charges which shall apply for the first month or part of month so delinquent with an additional penalty of 3 per centum for each subsequent month until the total of the charges and penalties are paid or until the license is canceled and the charges and penalties satisfied in accordance with law. # §811. Operation of navigation facilities; rules and regulations; penalties The [Commission](/usc/16/410cc–1.md?p=3) shall require the construction, maintenance, and operation by a [licensee](/usc/16/796.md?p=5) at its own expense of such lights and signals as may be directed by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Department in which the Coast Guard is operating, and such fishways as may be prescribed by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior or the [Secretary](/usc/16/410r–5.md?p=c-1) of Commerce, as appropriate. The license applicant and any party to the proceeding shall be entitled to a determination on the record, after opportunity for an agency trial-type hearing of no more than 90 days, on any disputed issues of material fact with respect to such fishways. All disputed issues of material fact raised by any party shall be determined in a single trial-type hearing to be conducted by the relevant resource agency in accordance with the regulations promulgated under this subsection[^1] and within the time frame established by the [Commission](/usc/16/410cc–1.md?p=3) for each license proceeding. Within 90 days of August 8, 2005, the [Secretaries](/usc/16/410r–5.md?p=c-1) of the Interior, Commerce, and Agriculture shall establish jointly, by rule, the procedures for such expedited trial-type hearing, including the opportunity to undertake discovery and cross-examine witnesses, in consultation with the Federal Energy Regulatory [Commission](/usc/16/410cc–1.md?p=3). The operation of any navigation facilities which may be constructed as a part of or in connection with any dam or diversion structure built under the provisions of this chapter, whether at the expense of a [licensee](/usc/16/796.md?p=5) hereunder or of the United States, shall at all times be controlled by such reasonable rules and regulations in the interest of navigation, including the control of the level of the pool caused by such dam or diversion structure as may be made from time to time by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Army; and for willful failure to comply with any such rule or regulation such [licensee](/usc/16/796.md?p=5) shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished as provided in [section 825o](/usc/16/825o.md) of this title. # §812. Public-service licensee; regulations by State or by commission as to service, rates, charges, etc. As a condition of the license, every [licensee](/usc/16/796.md?p=5) under this chapter which is a public-service corporation, or a [person](/usc/16/450rr–1.md?p=b), association, or corporation owning or operating any [project](/usc/16/410r–5.md?p=c-4) and developing, transmitting, or distributing power for sale or use in public service, shall abide by such reasonable regulation of the services to be rendered to customers or consumers of power, and of rates and charges of payment therefor, as may from time to time be prescribed by any duly constituted agency of the [State](/usc/16/6456.md?p=2) in which the service is rendered or the rate charged. That in case of the development, transmission, or distribution, or use in public service of power by any [licensee](/usc/16/796.md?p=5) under this chapter or by its customer engaged in public service within a [State](/usc/16/6456.md?p=2) which has not authorized and empowered a [commission](/usc/16/410cc–1.md?p=3) or other agency or agencies within said [State](/usc/16/6456.md?p=2) to regulate and control the services to be rendered by such [licensee](/usc/16/796.md?p=5) or by its customer engaged in public service, or the rates and charges of payment therefor, or the amount or character of [securities](/usc/16/796.md?p=16) to be issued by any of said parties, it is agreed as a condition of such license that jurisdiction is conferred upon the [commission](/usc/16/410cc–1.md?p=3), upon complaint of any [person](/usc/16/450rr–1.md?p=b) aggrieved or upon its own initiative, to exercise such regulation and control until such time as the [State](/usc/16/6456.md?p=2) shall have provided a [commission](/usc/16/410cc–1.md?p=3) or other authority for such regulation and control: Provided, That the jurisdiction of the [commission](/usc/16/410cc–1.md?p=3) shall cease and determine as to each specific matter of regulation and control prescribed in this section as soon as the [State](/usc/16/6456.md?p=2) shall have provided a [commission](/usc/16/410cc–1.md?p=3) or other authority for the regulation and control of that specific matter. # §813. Power entering into interstate commerce; regulation of rates, charges, etc. When said power or any part thereof shall enter into interstate or foreign commerce the rates charged and the service rendered by any such [licensee](/usc/16/796.md?p=5), or by any subsidiary corporation, the stock of which is owned or controlled directly or indirectly by such [licensee](/usc/16/796.md?p=5), or by any [person](/usc/16/450rr–1.md?p=b), corporation, or association purchasing power from such [licensee](/usc/16/796.md?p=5) for sale and distribution or use in public service shall be reasonable, nondiscriminatory, and just to the customer and all unreasonable discriminatory and unjust rates or services are prohibited and declared to be unlawful; and whenever any of the [States](/usc/16/544.md?p=r) directly concerned has not provided a [commission](/usc/16/410cc–1.md?p=3) or other authority to enforce the requirements of this section within such [State](/usc/16/6456.md?p=2) or to regulate and control the amount and character of [securities](/usc/16/796.md?p=16) to be issued by any of such parties, or such [States](/usc/16/544.md?p=r) are unable to agree through their properly constituted authorities on the services to be rendered, or on the rates or charges of payment therefor, or on the amount or character of [securities](/usc/16/796.md?p=16) to be issued by any of said parties, jurisdiction is conferred upon the [commission](/usc/16/410cc–1.md?p=3), upon complaint of any [person](/usc/16/450rr–1.md?p=b), aggrieved, upon the request of any [State](/usc/16/6456.md?p=2) concerned, or upon its own initiative to enforce the provisions of this section, to regulate and control so much of the services rendered, and of the rates and charges of payment therefor as constitute interstate or foreign commerce and to regulate the issuance of [securities](/usc/16/796.md?p=16) by the parties included within this section, and [securities](/usc/16/796.md?p=16) issued by the [licensee](/usc/16/796.md?p=5) subject to such regulations shall be allowed only for the bona fide purpose of financing and conducting the business of such [licensee](/usc/16/796.md?p=5). The administration of the provisions of this section, so far as applicable, shall be according to the procedure and practice in fixing and regulating the rates, charges, and practices of railroad companies as provided in subtitle IV of [title 49](/usc/49.md), and the parties subject to such regulation shall have the same rights of hearing, defense, and review as said companies in such cases. In any valuation of the property of any [licensee](/usc/16/796.md?p=5) hereunder for purposes of rate making, no value shall be claimed by the [licensee](/usc/16/796.md?p=5) or allowed by the [commission](/usc/16/410cc–1.md?p=3) for any [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) under license in excess of the value or values prescribed in [section 807 of this title](/usc/16/807.md) for the purposes of purchase by the United States, but there shall be included the cost to such [licensee](/usc/16/796.md?p=5) of the construction of the lock or locks or other aids of navigation and all other capital expenditures required by the United States, and no value shall be claimed or allowed for the rights granted by the [commission](/usc/16/410cc–1.md?p=3) or by this chapter. # §814. Exercise by licensee of power of eminent domain When any [licensee](/usc/16/796.md?p=5) cannot [acquire](/usc/16/620e.md?p=1) by contract or pledges an unimproved dam site or the right to use or damage the lands or property of others necessary to the construction, maintenance, or operation of any dam, reservoir, diversion structure, or the works appurtenant or accessory thereto, in conjunction with any improvement which in the judgment of the [commission](/usc/16/410cc–1.md?p=3) is 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, it may [acquire](/usc/16/620e.md?p=1) the same by the exercise of the right of eminent domain in the district court of the United States for the district in which such land or other property may be located, or in the [State](/usc/16/6456.md?p=2) courts. The practice and procedure in any action or proceeding for that purpose in the district court of the United States shall conform as nearly as may be with the practice and procedure in similar action or proceeding in the courts of the [State](/usc/16/6456.md?p=2) where the property is situated: Provided, That United States district courts shall only have jurisdiction of cases when the amount claimed by the [owner](/usc/16/429b–3.md?p=4) of the property to be condemned exceeds $3,000[^1] Provided further, That no [licensee](/usc/16/796.md?p=5) may use the right of eminent domain under this section to [acquire](/usc/16/620e.md?p=1) any lands or other property that, prior to October 24, 1992, were owned by a [State](/usc/16/6456.md?p=2) or political [subdivision](/usc/16/539m–1.md?p=15) thereof and were part of or included within any public [park](/usc/16/410r–5.md?p=c-3), [recreation area](/usc/16/460bbb–1.md?p=3) or [wildlife refuge](/usc/16/410hhh–1.md?p=6) established under [State](/usc/16/6456.md?p=2) or local law. In the case of lands or other property that are owned by a [State](/usc/16/6456.md?p=2) or political [subdivision](/usc/16/539m–1.md?p=15) and are part of or included within a public [park](/usc/16/410r–5.md?p=c-3), [recreation area](/usc/16/460bbb–1.md?p=3) or [wildlife refuge](/usc/16/410hhh–1.md?p=6) established under [State](/usc/16/6456.md?p=2) or local law on or after October 24, 1992, no [licensee](/usc/16/796.md?p=5) may use the right of eminent domain under this section to [acquire](/usc/16/620e.md?p=1) such lands or property unless there has been a public hearing held in the affected community and a finding by the [Commission](/usc/16/410cc–1.md?p=3), after due consideration of expressed public views and the recommendations of the [State](/usc/16/6456.md?p=2) or political [subdivision](/usc/16/539m–1.md?p=15) that owns the lands or property, that the license will not interfere or be inconsistent with the purposes for which such lands or property are owned. # §815. Contract to furnish power extending beyond period of license; obligations of new licensee Whenever the public interest requires or justifies the execution by the [licensee](/usc/16/796.md?p=5) of contracts for the sale and delivery of power for periods extending beyond the date of termination of the license, such contracts may be entered into upon the joint approval of the [commission](/usc/16/410cc–1.md?p=3) and of the public-service [commission](/usc/16/410cc–1.md?p=3) or other similar authority in the [State](/usc/16/6456.md?p=2) in which the sale or delivery of power is made, or if sold or delivered in a [State](/usc/16/6456.md?p=2) which has no such public-service [commission](/usc/16/410cc–1.md?p=3), then upon the approval of the [commission](/usc/16/410cc–1.md?p=3), and thereafter, in the event of failure to issue a new license to the original [licensee](/usc/16/796.md?p=5) at the termination of the license, the United States or the new [licensee](/usc/16/796.md?p=5), as the case may be, shall assume and fulfill all such contracts. # §816. Preservation of rights vested prior to June 10, 1920 The provisions of this subchapter shall not be construed as affecting any permit or valid existing right-of-way granted prior to June 10, 1920, or as confirming or otherwise affecting any claim, or as affecting any authority heretofore given pursuant to law, but any [person](/usc/16/450rr–1.md?p=b), association, corporation, [State](/usc/16/6456.md?p=2), or [municipality](/usc/16/2708.md?p=a-7) holding or possessing such permit, right-of-way or authority may apply for a license under this chapter, and upon such application the [Commission](/usc/16/410cc–1.md?p=3) may issue to any such applicant a license in accordance with the provisions of this subchapter and in such case the provisions of this chapter shall apply to such applicant as a [licensee](/usc/16/796.md?p=5) under this chapter: Provided, That when application is made for a license under this section for a [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) already constructed the fair value of said [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) determined as provided in this section, shall for the purposes of this subchapter and of said license be deemed to be the amount to be allowed as the net investment of the applicant in such [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) as of the date of such license, or as of the date of such determination, if license has not been issued. Such fair value shall be determined by the [Commission](/usc/16/410cc–1.md?p=3) after notice and opportunity for hearing. # §817. Projects not affecting navigable waters; necessity for Federal license, permit or right-of-way; unauthorized activities - (1) It shall be unlawful for any [person](/usc/16/450rr–1.md?p=b), [State](/usc/16/6456.md?p=2), or [municipality](/usc/16/2708.md?p=a-7), for the purpose of developing electric power, to construct, operate, or maintain any dam, water conduit, reservoir, power house, or other works incidental thereto across, along, or in any of the navigable waters of the United States, or upon any part of the [public lands](/usc/16/620e.md?p=7) or reservations of the United States (including the Territories), or utilize the surplus water or water power from any Government dam, except under and in accordance with the terms of a permit or valid existing right-of-way granted prior to June 10, 1920, or a license granted pursuant to this chapter. Any [person](/usc/16/450rr–1.md?p=b), association, corporation, [State](/usc/16/6456.md?p=2), or [municipality](/usc/16/2708.md?p=a-7) intending to construct a dam or other [project](/usc/16/410r–5.md?p=c-4) works, across, along, over, or in any stream or part thereof, other than those defined in this chapter as navigable waters, and over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the several [States](/usc/16/544.md?p=r) shall before such construction file declaration of such intention with the [Commission](/usc/16/410cc–1.md?p=3), whereupon the [Commission](/usc/16/410cc–1.md?p=3) shall cause immediate investigation of such proposed construction to be made, and if upon investigation it shall find that the interests of interstate or foreign commerce would be affected by such proposed construction, such [person](/usc/16/450rr–1.md?p=b), association, corporation, [State](/usc/16/6456.md?p=2), or [municipality](/usc/16/2708.md?p=a-7) shall not construct, maintain, or operate such dam or other [project](/usc/16/410r–5.md?p=c-4) works until it shall have applied for and shall have received a license under the provisions of this chapter. If the [Commission](/usc/16/410cc–1.md?p=3) shall not so find, and if no [public lands](/usc/16/620e.md?p=7) or reservations are affected, permission is granted to construct such dam or other [project](/usc/16/410r–5.md?p=c-4) works in such stream upon compliance with [State](/usc/16/6456.md?p=2) laws. - (2) No [person](/usc/16/450rr–1.md?p=b) may commence any significant modification of any [project](/usc/16/410r–5.md?p=c-4) licensed under, or exempted from, this chapter unless such modification is authorized in accordance with terms and conditions of such license or exemption and the applicable requirements of this subchapter. As used in this paragraph, the term “commence” refers to the beginning of physical on-site activity other than surveys or testing. # §818. Public lands included in project; reservation of lands from entry Any lands of the United States included in any proposed [project](/usc/16/410r–5.md?p=c-4) under the provisions of this subchapter shall from the date of filing of application therefor be reserved from entry, location, or other disposal under the laws of the United States until otherwise directed by the [Commission](/usc/16/410cc–1.md?p=3) or by Congress. Notice that such application has been made, together with the date of filing thereof and a description of the lands of the United States affected thereby, shall be filed in the local land office for the district in which such lands are located. Whenever the [Commission](/usc/16/410cc–1.md?p=3) shall determine that the value of any lands of the United States so applied for, or heretofore or hereafter reserved or classified as power sites, will not be injured or destroyed for the purposes of power development by location, entry, or selection under the public-land laws, the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior, upon notice of such determination, shall declare such lands open to location, entry, or selection, for such purpose or purposes and under such restrictions as the [Commission](/usc/16/410cc–1.md?p=3) may determine, subject to and with a reservation of the right of the United States or its permittees or [licensees](/usc/16/796.md?p=5) to enter upon, occupy, and use any part or all of said lands necessary, in the judgment of the [Commission](/usc/16/410cc–1.md?p=3), for the purposes of this subchapter, which right shall be expressly reserved in every patent issued for such lands; and no claim or right to compensation shall accrue from the occupation or use of any of said lands for said purposes. The United States or any [licensee](/usc/16/796.md?p=5) for any such lands hereunder may enter thereupon for the purposes of this subchapter, upon payment of any damages to crops, buildings, or other improvements caused thereby to the [owner](/usc/16/429b–3.md?p=4) thereof, or upon giving a good and sufficient bond to the United States for the use and benefit of the [owner](/usc/16/429b–3.md?p=4) to secure the payment of such damages as may be determined and fixed in an action brought upon the bond in a court of competent jurisdiction, said bond to be in the form prescribed by the [Commission](/usc/16/410cc–1.md?p=3): Provided, That locations, entries, selections, or filings heretofore made for lands reserved as water-power sites, or in connection with water-power development, or electrical transmission may proceed to approval or patent under and subject to the limitations and conditions in this section contained: Provided further, That before any lands applied for, or heretofore or hereafter reserved, or classified as power sites, are declared open to location, entry, or selection by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior, notice of intention to make such declaration shall be given to the Governor of the [State](/usc/16/6456.md?p=2) within which such lands are located, and such [State](/usc/16/6456.md?p=2) shall have ninety days from the date of such notice within which to file, under any statute or regulation applicable thereto, an application for the reservation to the [State](/usc/16/6456.md?p=2), or any political [subdivision](/usc/16/539m–1.md?p=15) thereof, of any lands required as a right-of-way for a public highway or as a source of materials for the construction and maintenance of such highways, and a copy of such application shall be filed with the Federal Power [Commission](/usc/16/410cc–1.md?p=3); and any location, entry, or selection of such lands, or subsequent patent thereof, shall be subject to any rights granted the [State](/usc/16/6456.md?p=2) pursuant to such application. # [§819. Repealed. Aug. 26, 1935, ch. 687, title II, § 212, 49 Stat. 847 — repealed] # §820. Proceedings for revocation of license or to prevent violations of license The Attorney General may, on request of the [commission](/usc/16/410cc–1.md?p=3) or of the [Secretary](/usc/16/410r–5.md?p=c-1) of the Army, [institute](/usc/16/6703.md?p=4) proceedings in equity in the district court of the United States in the district in which any [project](/usc/16/410r–5.md?p=c-4) or part thereof is situated for the purpose of revoking for [violation](/usc/16/620e.md?p=11) of its terms any permit or license issued hereunder, or for the purpose of remedying or correcting by injunction, mandamus, or other process any act of [commission](/usc/16/410cc–1.md?p=3) or omission in [violation](/usc/16/620e.md?p=11) of the provisions of this chapter or of any lawful regulation or order promulgated hereunder. The district courts shall have jurisdiction over all of the above-mentioned proceedings and shall have power to issue and execute all necessary process and to make and enforce all writs, orders and decrees to compel compliance with the lawful orders and regulations of the [commission](/usc/16/410cc–1.md?p=3) and of the [Secretary](/usc/16/410r–5.md?p=c-1) of the Army, and to compel the performance of any condition imposed under the provisions of this chapter. In the event a decree revoking a license is entered, the court is empowered to sell the whole or any part of the [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4) under license, to wind up the business of such [licensee](/usc/16/796.md?p=5) conducted in connection with such [project](/usc/16/410r–5.md?p=c-4) or [projects](/usc/16/410r–5.md?p=c-4), to [distribute](/usc/16/559b.md?p=c) the proceeds to the parties entitled to the same, and to make and enforce such further orders and decrees as equity and justice may require. At such sale or sales the vendee shall take the rights and privileges belonging to the [licensee](/usc/16/796.md?p=5) and shall perform the duties of such [licensee](/usc/16/796.md?p=5) and assume all outstanding obligations and liabilities of the [licensee](/usc/16/796.md?p=5) which the court may deem equitable in the premises; and at such sale or sales the United States may become a purchaser, but it shall not be required to pay a greater amount than it would be required to pay under the provisions of [section 807 of this title](/usc/16/807.md) at the termination of the license. # §821. State laws and water rights unaffected Nothing contained in this chapter shall be construed as affecting or intending to affect or in any way to interfere with the laws of the respective [States](/usc/16/544.md?p=r) relating to the control, appropriation, use, or distribution of water used in irrigation or for municipal or other [uses](/usc/16/410hhh–1.md?p=10), or any vested right acquired therein. # §822. Reservation of right to alter or repeal chapter The right to alter, amend, or repeal this chapter is expressly reserved; but no such alteration, amendment, or repeal shall affect any license theretofore issued under the provisions of this chapter or the rights of any [licensee](/usc/16/796.md?p=5) thereunder. # §823. Repeal of inconsistent laws All Acts or parts of Acts inconsistent with this chapter are repealed: Provided, That nothing contained herein shall be held or construed to modify or repeal any of the provisions of the Act of Congress approved December 19, 1913, granting certain rights-of-way to the city and county of San Francisco, in the [State](/usc/16/6456.md?p=2) of California. # §823a. Conduit hydroelectric facilities - (a) **Qualifying conduit hydropower facilities—** - (1) A [qualifying conduit hydropower facility](#a-3-B) shall not be required to be licensed under this subchapter. - (2) - (A) Any [person](/usc/16/450rr–1.md?p=b), [State](/usc/16/6456.md?p=2), or [municipality](/usc/16/2708.md?p=a-7) proposing to construct a [qualifying conduit hydropower facility](#a-3-B) shall file with the [Commission](/usc/16/410cc–1.md?p=3) a notice of intent to construct such facility. The notice shall include sufficient information to demonstrate that the facility meets the [qualifying criteria](#a-3-C). - (B) Not later than 15 days after receipt of a notice of intent filed under [subparagraph (A)](#a-2-A), the [Commission](/usc/16/410cc–1.md?p=3) shall— - (i) make an initial determination as to whether the facility meets the [qualifying criteria](#a-3-C); and - (ii) if the [Commission](/usc/16/410cc–1.md?p=3) makes an initial determination, pursuant to [clause (i)](#a-2-B-i), that the facility meets the [qualifying criteria](#a-3-C), publish public notice of the notice of intent filed under [subparagraph (A)](#a-2-A). - (C) If, not later than 30 days after the date of publication of the public notice described in [subparagraph (B)(ii)](#a-2-B-ii)— - (i) an entity contests whether the facility meets the [qualifying criteria](#a-3-C), the [Commission](/usc/16/410cc–1.md?p=3) shall promptly issue a written determination as to whether the facility meets such criteria; or - (ii) no entity contests whether the facility meets the [qualifying criteria](#a-3-C), the facility shall be deemed to meet such criteria. - (3) For purposes of this section: - (A) The term “conduit” means any tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. - (B) The term “qualifying conduit hydropower facility” means a facility (not including any dam or other impoundment) that is determined or deemed under [paragraph (2)(C)](#a-2-C) to meet the [qualifying criteria](#a-3-C). - (C) The term “qualifying criteria” means, with respect to a facility— - (i) the facility is constructed, operated, or maintained for the generation of electric power and [uses](/usc/16/410hhh–1.md?p=10) for such generation only the hydroelectric potential of a non-federally owned [conduit](#a-3-A); - (ii) the facility has an installed capacity that does not exceed 40 megawatts; and - (iii) on or before August 9, 2013, the facility is not licensed under, or exempted from the license requirements contained in, this subchapter. - (b) **Exemption qualifications—** Subject to [subsection (c)](#c), the [Commission](/usc/16/410cc–1.md?p=3) may grant an exemption in whole or in part from the requirements of this subchapter, including any license requirements contained in this subchapter, to any facility (not including any dam or other impoundment) constructed, operated, or maintained for the generation of electric power which the [Commission](/usc/16/410cc–1.md?p=3) determines, by rule or order— - (1) utilizes for such generation only the hydroelectric potential of a [conduit](#a-3-A); and - (2) has an installed capacity that does not exceed 40 megawatts. - (c) **Consultation with Federal and State agencies—** In making the determination under [subsection (b)](#b) the [Commission](/usc/16/410cc–1.md?p=3) shall consult with the United States Fish and Wildlife Service[^1] National Marine [Fisheries](/usc/16/1383a.md?p=o-1) Service[^1] and the [State](/usc/16/6456.md?p=2) agency exercising administration over the fish and wildlife [resources](/usc/16/410hhh–1.md?p=8) of the [State](/usc/16/6456.md?p=2) in which the facility is or will be located, in the manner provided by the Fish and Wildlife Coordination Act ([16 U.S.C. 661](/usc/16/661.md), et seq.), and shall include in any such exemption— - (1) such terms and conditions as the Fish and Wildlife Service[^1] National Marine [Fisheries](/usc/16/1383a.md?p=o-1) Service[^1] and the [State](/usc/16/6456.md?p=2) agency each determine are appropriate to prevent loss of, or damage to, such [resources](/usc/16/410hhh–1.md?p=8) and to otherwise carry out the purposes of such Act, and - (2) such terms and conditions as the [Commission](/usc/16/410cc–1.md?p=3) deems appropriate to insure that such facility continues to comply with the provisions of this section and terms and conditions included in any such exemption. - (d) **Violation of terms of exemption—** Any [violation](/usc/16/620e.md?p=11) of a term or condition of any exemption granted under [subsection (b)](#b) shall be treated as a [violation](/usc/16/620e.md?p=11) of a rule or order of the [Commission](/usc/16/410cc–1.md?p=3) under this chapter. - (e) **Fees for studies—** The [Commission](/usc/16/410cc–1.md?p=3), in [addition](/usc/16/410r–5.md?p=c-2) to the requirements of [section 803(e) of this title](/usc/16/803.md?p=e), shall establish fees which shall be paid by an applicant for a license or exemption for a [project](/usc/16/410r–5.md?p=c-4) that is required to meet terms and conditions set by fish and wildlife agencies under [subsection (c)](#c). Such fees shall be adequate to reimburse the fish and wildlife agencies referred to in [subsection (c)](#c) for any reasonable costs incurred in connection with any studies or other reviews carried out by such agencies for purposes of compliance with this section. The fees shall, subject to annual appropriations Acts, be transferred to such agencies by the [Commission](/usc/16/410cc–1.md?p=3) for use solely for purposes of carrying out such studies and shall remain available until expended. # §823b. Enforcement - (a) **Monitoring and investigation—** The [Commission](/usc/16/410cc–1.md?p=3) shall monitor and investigate compliance with each license and permit issued under this subchapter and with each exemption granted from any requirement of this subchapter. The [Commission](/usc/16/410cc–1.md?p=3) shall conduct such investigations as may be necessary and proper in accordance with this chapter. After notice and opportunity for public hearing, the [Commission](/usc/16/410cc–1.md?p=3) may issue such orders as necessary to require compliance with the terms and conditions of licenses and permits issued under this subchapter and with the terms and conditions of exemptions granted from any requirement of this subchapter. - (b) **Revocation orders—** After notice and opportunity for an evidentiary hearing, the [Commission](/usc/16/410cc–1.md?p=3) may also issue an order revoking any license issued under this subchapter or any exemption granted from any requirement of this subchapter where any [licensee](/usc/16/796.md?p=5) or exemptee is found by the [Commission](/usc/16/410cc–1.md?p=3): - (1) to have knowingly violated a final order issued under [subsection (a)](#a) after completion of judicial review (or the opportunity for judicial review); and - (2) to have been given reasonable time to comply fully with such order prior to commencing any revocation proceeding. In any such proceeding, the order issued under [subsection (a)](#a) shall be subject to de novo review by the [Commission](/usc/16/410cc–1.md?p=3). No order shall be issued under this subsection until after the [Commission](/usc/16/410cc–1.md?p=3) has taken into consideration the nature and seriousness of the [violation](/usc/16/620e.md?p=11) and the efforts of the [licensee](/usc/16/796.md?p=5) to remedy the [violation](/usc/16/620e.md?p=11). - (c) **Civil penalty—** Any [licensee](/usc/16/796.md?p=5), permittee, or exemptee who violates or fails or refuses to comply with any rule or regulation under this subchapter, any term, or condition of a license, permit, or exemption under this subchapter, or any order issued under [subsection (a)](#a) shall be subject to a civil penalty in an amount not to exceed $10,000 for each day that such [violation](/usc/16/620e.md?p=11) or failure or refusal continues. Such penalty shall be assessed by the [Commission](/usc/16/410cc–1.md?p=3) after notice and opportunity for public hearing. In determining the amount of a proposed penalty, the [Commission](/usc/16/410cc–1.md?p=3) shall take into consideration the nature and seriousness of the [violation](/usc/16/620e.md?p=11), failure, or refusal and the efforts of the [licensee](/usc/16/796.md?p=5) to remedy the [violation](/usc/16/620e.md?p=11), failure, or refusal in a timely manner. No civil penalty shall be assessed where revocation is ordered. - (d) **Assessment—** - (1) Before issuing an order assessing a civil penalty against any [person](/usc/16/450rr–1.md?p=b) under this section, the [Commission](/usc/16/410cc–1.md?p=3) shall provide to such [person](/usc/16/450rr–1.md?p=b) notice of the proposed penalty. Such notice shall, except in the case of a [violation](/usc/16/620e.md?p=11) of a final order issued under [subsection (a)](#a), inform such [person](/usc/16/450rr–1.md?p=b) of his opportunity to elect in writing within 30 days after the date of receipt of such notice to have the procedures of [paragraph (3)](#d-3) (in lieu of those of [paragraph (2)](#d-2)) apply with respect to such assessment. - (2) - (A) In the case of the [violation](/usc/16/620e.md?p=11) of a final order issued under [subsection (a)](#a), or unless an election is made within 30 calendar days after receipt of notice under [paragraph (1)](#d-1) to have [paragraph (3)](#d-3) apply with respect to such penalty, the [Commission](/usc/16/410cc–1.md?p=3) shall assess the penalty, by order, after a determination of [violation](/usc/16/620e.md?p=11) has been made on the record after an opportunity for an agency hearing pursuant to [section 554 of title 5](/usc/5/554.md) before an administrative law judge appointed under [section 3105](/usc/5/3105.md) of such title 5. Such assessment order shall include the administrative law judge’s findings and the basis for such assessment. - (B) Any [person](/usc/16/450rr–1.md?p=b) against whom a penalty is assessed under this paragraph may, within 60 calendar days after the date of the order of the [Commission](/usc/16/410cc–1.md?p=3) assessing such penalty, [institute](/usc/16/6703.md?p=4) an action in the United States court of appeals for the appropriate judicial circuit for judicial review of such order in accordance with [chapter 7](/usc/5/chptI-ch7.md) of title 5. The court shall have jurisdiction to enter a judgment affirming, modifying, or setting aside in whole or in Part,[^1] the order of the [Commission](/usc/16/410cc–1.md?p=3), or the court may remand the proceeding to the [Commission](/usc/16/410cc–1.md?p=3) for such further action as the court may direct. - (3) - (A) In the case of any civil penalty with respect to which the procedures of this paragraph have been elected, the [Commission](/usc/16/410cc–1.md?p=3) shall promptly assess such penalty, by order, after the date of the receipt of the notice under [paragraph (1)](#d-1) of the proposed penalty. - (B) If the civil penalty has not been paid within 60 calendar days after the assessment order has been made under [subparagraph (A)](#d-3-A), the [Commission](/usc/16/410cc–1.md?p=3) shall [institute](/usc/16/6703.md?p=4) an action in the appropriate district court of the United States for an order affirming the assessment of the civil penalty. The court shall have authority to review de novo the law and the facts involved, and shall have jurisdiction to enter a judgment enforcing, modifying, and enforcing as so modified, or setting aside in whole or in Part,[^1] such assessment. - (C) Any election to have this paragraph apply may not be revoked except with the consent of the [Commission](/usc/16/410cc–1.md?p=3). - (4) The [Commission](/usc/16/410cc–1.md?p=3) may compromise, modify, or remit, with or without conditions, any civil penalty which may be imposed under this subsection, taking into consideration the nature and seriousness of the [violation](/usc/16/620e.md?p=11) and the efforts of the [licensee](/usc/16/796.md?p=5) to remedy the [violation](/usc/16/620e.md?p=11) in a timely manner at any time prior to a final decision by the court of appeals under [paragraph (2)](#d-2) or by the district court under [paragraph (3)](#d-3). - (5) If any [person](/usc/16/450rr–1.md?p=b) fails to pay an assessment of a civil penalty after it has become a final and unappealable order under [paragraph (2)](#d-2), or after the appropriate district court has entered final judgment in favor of the [Commission](/usc/16/410cc–1.md?p=3) under [paragraph (3)](#d-3), the [Commission](/usc/16/410cc–1.md?p=3) shall [institute](/usc/16/6703.md?p=4) an action to recover the amount of such penalty in any appropriate district court of the United States. In such action, the validity and appropriateness of such final assessment order or judgment shall not be subject to review. - (6) - (A) Notwithstanding the provisions of [title 28](/usc/28.md) or of this chapter, the [Commission](/usc/16/410cc–1.md?p=3) may be represented by the general counsel of the [Commission](/usc/16/410cc–1.md?p=3) (or any attorney or attorneys within the [Commission](/usc/16/410cc–1.md?p=3) designated by the Chairman) who shall supervise, conduct, and argue any civil litigation to which paragraph (3) of this subsection applies (including any related collection action under [paragraph (5)](#d-5)) in a court of the United States or in any other court, except the Supreme Court. However, the [Commission](/usc/16/410cc–1.md?p=3) or the general counsel shall consult with the Attorney General concerning such litigation, and the Attorney General shall provide, on request, such assistance in the conduct of such litigation as may be appropriate. - (B) The [Commission](/usc/16/410cc–1.md?p=3) shall be represented by the Attorney General, or the Solicitor General, as appropriate, in actions under this subsection, except to the extent provided in subparagraph (A) of this paragraph. # §823c. Alaska State jurisdiction over small hydroelectric projects - (a) **Discontinuance of regulation by the Commission—** Notwithstanding sections [797(e)](/usc/16/797.md?p=e) and [817](/usc/16/817.md) of this title, the [Commission](/usc/16/410cc–1.md?p=3) shall discontinue exercising licensing and regulatory authority under this subchapter over [qualifying project works](#b) in the [State](/usc/16/6456.md?p=2) of Alaska, effective on the date on which the [Commission](/usc/16/410cc–1.md?p=3) certifies that the [State](/usc/16/6456.md?p=2) of Alaska has in place a regulatory [program](/usc/16/460ss–6.md?p=1) for water-power development that— - (1) protects the public interest, the purposes listed in [paragraph (2)](#a-2), and the environment to the same extent provided by licensing and regulation by the [Commission](/usc/16/410cc–1.md?p=3) under this subchapter and other applicable Federal laws, including the Endangered Species Act ([16 U.S.C. 1531](/usc/16/1531.md) et seq.) and the Fish and Wildlife Coordination Act ([16 U.S.C. 661](/usc/16/661.md) et seq.); - (2) gives equal consideration to the purposes of— - (A) energy [conservation](/usc/16/6456.md?p=2); - (B) the protection, mitigation of damage to, and enhancement of, fish and wildlife (including related spawning grounds and habitat); - (C) the protection of recreational opportunities; - (D) the preservation of other aspects of environmental quality; - (E) the interests of Alaska Natives; and - (F) other beneficial public [uses](/usc/16/410hhh–1.md?p=10), including irrigation, flood control, water supply, and navigation; and - (3) requires, as a condition of a license for any [project](/usc/16/410r–5.md?p=c-4) works— - (A) the construction, maintenance, and operation by a [licensee](/usc/16/796.md?p=5) at its own expense of such lights and signals as may be directed by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Department in which the Coast Guard is operating, and such fishways as may be prescribed by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior or the [Secretary](/usc/16/410r–5.md?p=c-1) of Commerce, as appropriate; - (B) the operation of any navigation facilities which may be constructed as part of any [project](/usc/16/410r–5.md?p=c-4) to be controlled at all times by such reasonable rules and regulations as may be made by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Army; and - (C) except as provided in [subsection (j)](#j), conditions for the protection, mitigation, and enhancement of fish and wildlife based on recommendations received pursuant to the Fish and Wildlife Coordination Act ([16 U.S.C. 661](/usc/16/661.md) et seq.) from the National Marine [Fisheries](/usc/16/1383a.md?p=o-1) Service, the United States Fish and Wildlife Service, and [State](/usc/16/6456.md?p=2) fish and wildlife agencies. - (b) **Definition of “qualifying project works”—** For purposes of this section, the term “qualifying project works” means [project](/usc/16/410r–5.md?p=c-4) works— - (1) that are not part of a [project](/usc/16/410r–5.md?p=c-4) licensed under this part or exempted from licensing under this subchapter or [section 2705 of this title](/usc/16/2705.md) prior to November 9, 2000; - (2) for which a preliminary permit, a license application, or an application for an exemption from licensing has not been accepted for filing by the [Commission](/usc/16/410cc–1.md?p=3) prior to November 9, 2000 (unless such application is withdrawn at the election of the applicant); - (3) that are part of a [project](/usc/16/410r–5.md?p=c-4) that has a power production capacity of 5,000 kilowatts or less; - (4) that are located entirely within the boundaries of the [State](/usc/16/6456.md?p=2) of Alaska; and - (5) that are not located in whole or in part on any Indian reservation, a [conservation](/usc/16/6456.md?p=2) [system unit](/usc/16/3502.md?p=a-8) (as defined in [section 3102(4) of this title](/usc/16/3102.md?p=4)), or segment of a river designated for study for [addition](/usc/16/410r–5.md?p=c-2) to the Wild and Scenic Rivers [System](/usc/16/668ee.md?p=14). - (c) **Election of State licensing—** In the case of nonqualifying project works that would be a [qualifying project works](#b) but for the fact that the [project](/usc/16/410r–5.md?p=c-4) has been licensed (or exempted from licensing) by the [Commission](/usc/16/410cc–1.md?p=3) prior to November 9, 2000, the [licensee](/usc/16/796.md?p=5) of such [project](/usc/16/410r–5.md?p=c-4) may in its discretion elect to make the [project](/usc/16/410r–5.md?p=c-4) subject to licensing and regulation by the [State](/usc/16/6456.md?p=2) of Alaska under this section. - (d) **Project works on Federal lands—** With respect to [projects](/usc/16/410r–5.md?p=c-4) located in whole or in part on a reservation, a [conservation](/usc/16/6456.md?p=2) [system unit](/usc/16/3502.md?p=a-8), or the [public lands](/usc/16/620e.md?p=7), a [State](/usc/16/6456.md?p=2) license or exemption from licensing shall be subject to— - (1) the approval of the [Secretary](/usc/16/410r–5.md?p=c-1) having jurisdiction over such lands; and - (2) such conditions as the [Secretary](/usc/16/410r–5.md?p=c-1) may prescribe. - (e) **Consultation with affected agencies—** The [Commission](/usc/16/410cc–1.md?p=3) shall consult with the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior, the [Secretary](/usc/16/410r–5.md?p=c-1) of Agriculture, and the [Secretary](/usc/16/410r–5.md?p=c-1) of Commerce before certifying the [State](/usc/16/6456.md?p=2) of Alaska’s regulatory [program](/usc/16/460ss–6.md?p=1). - (f) **Application of Federal laws—** Nothing in this section shall preempt the application of Federal environmental, natural [resources](/usc/16/410hhh–1.md?p=8), or cultural [resources](/usc/16/410hhh–1.md?p=8) protection laws according to their terms. - (g) **Oversight by the Commission—** The [State](/usc/16/6456.md?p=2) of Alaska shall notify the [Commission](/usc/16/410cc–1.md?p=3) not later than 30 days after making any significant modification to its regulatory [program](/usc/16/460ss–6.md?p=1). The [Commission](/usc/16/410cc–1.md?p=3) shall periodically review the [State](/usc/16/6456.md?p=2)’s [program](/usc/16/460ss–6.md?p=1) to ensure compliance with the provisions of this section. - (h) **Resumption of Commission authority—** Notwithstanding [subsection (a)](#a), the [Commission](/usc/16/410cc–1.md?p=3) shall reassert its licensing and regulatory authority under this subchapter if the [Commission](/usc/16/410cc–1.md?p=3) finds that the [State](/usc/16/6456.md?p=2) of Alaska has not complied with one or more of the requirements of this section. - (i) **Determination by the Commission—** - (1) Upon application by the Governor of the [State](/usc/16/6456.md?p=2) of Alaska, the [Commission](/usc/16/410cc–1.md?p=3) shall within 30 days commence a review of the [State](/usc/16/6456.md?p=2) of Alaska’s regulatory [program](/usc/16/460ss–6.md?p=1) for water-power development to determine whether it complies with the requirements of [subsection (a)](#a). - (2) The [Commission](/usc/16/410cc–1.md?p=3)’s review required by [paragraph (1)](#i-1) shall be completed within 1 year of initiation, and the [Commission](/usc/16/410cc–1.md?p=3) shall within 30 days thereafter issue a final order determining whether or not the [State](/usc/16/6456.md?p=2) of Alaska’s regulatory [program](/usc/16/460ss–6.md?p=1) for water-power development complies with the requirements of [subsection (a)](#a). - (3) If the [Commission](/usc/16/410cc–1.md?p=3) fails to issue a final order in accordance with [paragraph (2)](#i-2) the [State](/usc/16/6456.md?p=2) of Alaska’s regulatory [program](/usc/16/460ss–6.md?p=1) for water-power development shall be deemed to be in compliance with [subsection (a)](#a). - (j) **Fish and wildlife—** If the [State](/usc/16/6456.md?p=2) of Alaska determines that a recommendation under [subsection (a)(3)(C)](#a-3-C) is inconsistent with paragraphs [(1)](#a-1) and [(2)](#a-2) of subsection (a), the [State](/usc/16/6456.md?p=2) of Alaska may decline to adopt all or part of the recommendations in accordance with the procedures established under [section 803(j)(2) of this title](/usc/16/803.md?p=j-2). # §823d. Alternative conditions and prescriptions - (a) **Alternative conditions—** - (1) Whenever any [person](/usc/16/450rr–1.md?p=b) applies for a license for any [project](/usc/16/410r–5.md?p=c-4) works within any reservation of the United States, and the [Secretary](/usc/16/410r–5.md?p=c-1) of the department under whose supervision such reservation falls (referred to in this subsection as the “[Secretary](/usc/16/410r–5.md?p=c-1)”) deems a condition to such license to be necessary under the first proviso of [section 797(e) of this title](/usc/16/797.md?p=e), the license applicant or any other party to the license proceeding may propose an alternative condition. - (2) Notwithstanding the first proviso of [section 797(e) of this title](/usc/16/797.md?p=e), the [Secretary](/usc/16/410r–5.md?p=c-1) shall accept the proposed alternative condition referred to in [paragraph (1)](#a-1), and the [Commission](/usc/16/410cc–1.md?p=3) shall include in the license such alternative condition, if the [Secretary](/usc/16/410r–5.md?p=c-1) determines, based on substantial evidence provided by the license applicant, any other party to the proceeding, or otherwise available to the [Secretary](/usc/16/410r–5.md?p=c-1), that such alternative condition— - (A) provides for the adequate protection and utilization of the reservation; and - (B) will either, as compared to the condition initially by the [Secretary](/usc/16/410r–5.md?p=c-1)— - (i) cost significantly less to implement; or - (ii) result in improved operation of the [project](/usc/16/410r–5.md?p=c-4) works for electricity production. - (3) In making a determination under [paragraph (2)](#a-2), the [Secretary](/usc/16/410r–5.md?p=c-1) shall consider evidence provided for the record by any party to a licensing proceeding, or otherwise available to the [Secretary](/usc/16/410r–5.md?p=c-1), including any evidence provided by the [Commission](/usc/16/410cc–1.md?p=3), on the implementation costs or operational impacts for electricity production of a proposed alternative. - (4) The [Secretary concerned](/usc/16/620e.md?p=8) shall submit into the public record of the [Commission](/usc/16/410cc–1.md?p=3) proceeding with any condition under [section 797(e) of this title](/usc/16/797.md?p=e) or alternative condition it accepts under this section, a written statement explaining the basis for such condition, and reason for not accepting any alternative condition under this section. The written statement must demonstrate that the [Secretary](/usc/16/410r–5.md?p=c-1) gave equal consideration to the effects of the condition adopted and alternatives not accepted on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in [addition](/usc/16/410r–5.md?p=c-2) to the preservation of other aspects of environmental quality); based on such information as may be available to the [Secretary](/usc/16/410r–5.md?p=c-1), including information voluntarily provided in a timely manner by the applicant and others. The [Secretary](/usc/16/410r–5.md?p=c-1) shall also submit, together with the aforementioned written statement, all studies, data, and other factual information available to the [Secretary](/usc/16/410r–5.md?p=c-1) and relevant to the [Secretary](/usc/16/410r–5.md?p=c-1)’s decision. - (5) If the [Commission](/usc/16/410cc–1.md?p=3) finds that the [Secretary](/usc/16/410r–5.md?p=c-1)’s final condition would be inconsistent with the purposes of this subchapter, or other applicable law, the [Commission](/usc/16/410cc–1.md?p=3) may refer the dispute to the [Commission](/usc/16/410cc–1.md?p=3)’s Dispute Resolution Service. The Dispute Resolution Service shall consult with the [Secretary](/usc/16/410r–5.md?p=c-1) and the [Commission](/usc/16/410cc–1.md?p=3) and issue a non-binding advisory within 90 days. The [Secretary](/usc/16/410r–5.md?p=c-1) may accept the Dispute Resolution Service advisory unless the [Secretary](/usc/16/410r–5.md?p=c-1) finds that the recommendation will not adequately protect the reservation. The [Secretary](/usc/16/410r–5.md?p=c-1) shall submit the advisory and the [Secretary](/usc/16/410r–5.md?p=c-1)’s final written determination into the record of the [Commission](/usc/16/410cc–1.md?p=3)’s proceeding. - (b) **Alternative prescriptions—** - (1) Whenever the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior or the [Secretary](/usc/16/410r–5.md?p=c-1) of Commerce prescribes a fishway under [section 811 of this title](/usc/16/811.md), the license applicant or any other party to the license proceeding may propose an alternative to such prescription to construct, maintain, or operate a fishway. - (2) Notwithstanding [section 811 of this title](/usc/16/811.md), the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior or the [Secretary](/usc/16/410r–5.md?p=c-1) of Commerce, as appropriate, shall accept and prescribe, and the [Commission](/usc/16/410cc–1.md?p=3) shall require, the proposed alternative referred to in [paragraph (1)](#b-1), if the [Secretary](/usc/16/410r–5.md?p=c-1) of the appropriate department determines, based on substantial evidence provided by the license applicant, any other party to the proceeding, or otherwise available to the [Secretary](/usc/16/410r–5.md?p=c-1), that such alternative— - (A) will be no less protective than the fishway initially prescribed by the [Secretary](/usc/16/410r–5.md?p=c-1); and - (B) will either, as compared to the fishway initially prescribed by the [Secretary](/usc/16/410r–5.md?p=c-1)— - (i) cost significantly less to implement; or - (ii) result in improved operation of the [project](/usc/16/410r–5.md?p=c-4) works for electricity production. - (3) In making a determination under [paragraph (2)](#b-2), the [Secretary](/usc/16/410r–5.md?p=c-1) shall consider evidence provided for the record by any party to a licensing proceeding, or otherwise available to the [Secretary](/usc/16/410r–5.md?p=c-1), including any evidence provided by the [Commission](/usc/16/410cc–1.md?p=3), on the implementation costs or operational impacts for electricity production of a proposed alternative. - (4) The [Secretary concerned](/usc/16/620e.md?p=8) shall submit into the public record of the [Commission](/usc/16/410cc–1.md?p=3) proceeding with any prescription under [section 811 of this title](/usc/16/811.md) or alternative prescription it accepts under this section, a written statement explaining the basis for such prescription, and reason for not accepting any alternative prescription under this section. The written statement must demonstrate that the [Secretary](/usc/16/410r–5.md?p=c-1) gave equal consideration to the effects of the prescription adopted and alternatives not accepted on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in [addition](/usc/16/410r–5.md?p=c-2) to the preservation of other aspects of environmental quality); based on such information as may be available to the [Secretary](/usc/16/410r–5.md?p=c-1), including information voluntarily provided in a timely manner by the applicant and others. The [Secretary](/usc/16/410r–5.md?p=c-1) shall also submit, together with the aforementioned written statement, all studies, data, and other factual information available to the [Secretary](/usc/16/410r–5.md?p=c-1) and relevant to the [Secretary](/usc/16/410r–5.md?p=c-1)’s decision. - (5) If the [Commission](/usc/16/410cc–1.md?p=3) finds that the [Secretary](/usc/16/410r–5.md?p=c-1)’s final prescription would be inconsistent with the purposes of this subchapter, or other applicable law, the [Commission](/usc/16/410cc–1.md?p=3) may refer the dispute to the [Commission](/usc/16/410cc–1.md?p=3)’s Dispute Resolution Service. The Dispute Resolution Service shall consult with the [Secretary](/usc/16/410r–5.md?p=c-1) and the [Commission](/usc/16/410cc–1.md?p=3) and issue a non-binding advisory within 90 days. The [Secretary](/usc/16/410r–5.md?p=c-1) may accept the Dispute Resolution Service advisory unless the [Secretary](/usc/16/410r–5.md?p=c-1) finds that the recommendation will not adequately protect the fish [resources](/usc/16/410hhh–1.md?p=8). The [Secretary](/usc/16/410r–5.md?p=c-1) shall submit the advisory and the [Secretary](/usc/16/410r–5.md?p=c-1)’s final written determination into the record of the [Commission](/usc/16/410cc–1.md?p=3)’s proceeding. # §823e. Promoting hydropower development at existing nonpowered dams - (a) **Expedited licensing process for non-Federal hydropower projects at existing nonpowered dams—** - (1) **In general—** As provided in this section, the [Commission](/usc/16/410cc–1.md?p=3) may issue and amend licenses, as appropriate, for any facility the [Commission](/usc/16/410cc–1.md?p=3) determines is a [qualifying facility](#e-2). - (2) **Rule—** Not later than 180 days after October 23, 2018, the [Commission](/usc/16/410cc–1.md?p=3) shall issue a rule establishing an expedited process for issuing and amending licenses for [qualifying facilities](#e-2) under this section. - (3) **Interagency task force—** - (A) In establishing the expedited process under this section, the [Commission](/usc/16/410cc–1.md?p=3) shall convene an interagency [task force](/usc/16/4702.md?p=15), with appropriate Federal and [State](/usc/16/6456.md?p=2) agencies and [Indian tribes](/usc/16/544.md?p=g) represented, to coordinate the regulatory processes associated with the authorizations required to construct and operate a [qualifying facility](#e-2). - (B) The [task force](/usc/16/4702.md?p=15) shall develop procedures that are consistent with [subsection (e)(1)(E)](#e-1-E) to seek to ensure that, for [projects](/usc/16/410r–5.md?p=c-4) licensed pursuant to this section, the [Commission](/usc/16/410cc–1.md?p=3) and appropriate Federal and [State](/usc/16/6456.md?p=2) agencies and [Indian tribes](/usc/16/544.md?p=g) shall exercise their authorities in a manner that, to the extent practicable, will not result in any material change to the storage, release, or flow operations of the associated nonpowered dam existing at the time an applicant files its license application. - (4) **Length of process—** The [Commission](/usc/16/410cc–1.md?p=3) shall seek to ensure that the expedited process under this section will result in a final decision on an application for a license by not later than 2 years after receipt of a completed application for the license. - (b) **Dam safety—** - (1) **Assessment—** Before issuing any license for a [qualifying facility](#e-2), the [Commission](/usc/16/410cc–1.md?p=3) shall assess the safety of existing non-Federal dams and other non-Federal structures related to the [qualifying facility](#e-2) (including possible consequences associated with failure of such structures). - (2) **Requirements—** In issuing any license for a [qualifying facility](#e-2) at a non-Federal dam, the [Commission](/usc/16/410cc–1.md?p=3) shall ensure that the [Commission](/usc/16/410cc–1.md?p=3)’s dam safety requirements apply to such [qualifying facility](#e-2), and the associated [qualifying nonpowered dam](#e-3), over the term of such license. - (c) **Interagency communications—** Interagency cooperation in the preparation of environmental documents under the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.) with respect to an application for a license for a [qualifying facility](#e-2) under this section, and interagency communications relating to licensing process coordination pursuant to this section, shall not— - (1) be considered to be ex parte communications under [Commission](/usc/16/410cc–1.md?p=3) rules; or - (2) preclude an agency from participating in a licensing proceeding under this subchapter, providing that any agency participating as a party in a licensing proceeding under this subchapter shall, to the extent practicable, demonstrate a separation of staff cooperating with the [Commission](/usc/16/410cc–1.md?p=3) under the National Environmental Policy Act[^1] ([42 U.S.C. 4321](/usc/42/4321.md) et seq.) and staff participating in the applicable proceeding under this subchapter. - (d) **Identification of nonpowered dams for hydropower development—** - (1) **In general—** Not later than 12 months after October 23, 2018, the [Commission](/usc/16/410cc–1.md?p=3), with the [Secretary](/usc/16/410r–5.md?p=c-1) of the Army, the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior, and the [Secretary](/usc/16/410r–5.md?p=c-1) of Agriculture, shall jointly develop a list of existing nonpowered Federal dams that the [Commission](/usc/16/410cc–1.md?p=3) and the [Secretaries](/usc/16/410r–5.md?p=c-1) agree have the greatest potential for non-Federal hydropower development. - (2) **Considerations—** In developing the list under [paragraph (1)](#d-1), the [Commission](/usc/16/410cc–1.md?p=3) and the [Secretaries](/usc/16/410r–5.md?p=c-1) may consider the following: - (A) The compatibility of hydropower generation with existing purposes of the dam. - (B) The proximity of the dam to existing transmission [resources](/usc/16/410hhh–1.md?p=8). - (C) The existence of studies to characterize environmental, cultural, and historic [resources](/usc/16/410hhh–1.md?p=8) relating to the dam. - (D) The effects of hydropower development on release or flow operations of the dam. - (3) **Availability—** The [Commission](/usc/16/410cc–1.md?p=3) shall— - (A) provide the list developed under [paragraph (1)](#d-1) to— - (i) the [Committee](/usc/16/941b.md?p=1) on Energy and Commerce, the [Committee](/usc/16/941b.md?p=1) on Transportation and Infrastructure, and the [Committee](/usc/16/941b.md?p=1) on Natural [Resources](/usc/16/410hhh–1.md?p=8), of the House of [Representatives](/usc/16/5609.md?p=13); and - (ii) the [Committee](/usc/16/941b.md?p=1) on Environment and Public Works, and the [Committee](/usc/16/941b.md?p=1) on Energy and Natural [Resources](/usc/16/410hhh–1.md?p=8), of the Senate; and - (B) make such list available to the public. - (e) **Definitions—** For purposes of this section: - (1) **Qualifying criteria—** The term “qualifying criteria” means, with respect to a facility— - (A) as of October 23, 2018, the facility is not licensed under, or exempted from the license requirements contained in, this subchapter; - (B) the facility will be associated with a [qualifying nonpowered dam](#e-3); - (C) the facility will be constructed, operated, and maintained for the generation of electric power; - (D) the facility will use for such generation any withdrawals, diversions, releases, or flows from the associated [qualifying nonpowered dam](#e-3), including its associated impoundment or other infrastructure; and - (E) the operation of the facility will not result in any material change to the storage, release, or flow operations of the associated [qualifying nonpowered dam](#e-3). - (2) **Qualifying facility—** The term “qualifying facility” means a facility that is determined under this section to meet the [qualifying criteria](#e-1). - (3) **Qualifying nonpowered dam—** The term “qualifying nonpowered dam” means any dam, dike, embankment, or other barrier— - (A) the construction of which was completed on or before October 23, 2018; - (B) that is or was operated for the control, release, or distribution of water for agricultural, municipal, navigational, industrial, commercial, environmental, recreational, aesthetic, drinking water, or flood control purposes; and - (C) that, as of October 23, 2018, is not generating electricity with hydropower generating works that are licensed under, or exempted from the license requirements contained in, this subchapter. - (f) **Savings clause—** Nothing in this section affects— - (1) any authority of the [Commission](/usc/16/410cc–1.md?p=3) to license a facility at a nonpowered dam under this subchapter; and - (2) any authority of the [Commission](/usc/16/410cc–1.md?p=3) to issue an exemption to a small hydroelectric power [project](/usc/16/410r–5.md?p=c-4) under the Public Utility Regulatory Policies Act of 1978. # §823f. Closed-loop pumped storage projects - (a) **Expedited licensing process for closed-loop pumped storage projects—** - (1) **In general—** As provided in this section, the [Commission](/usc/16/410cc–1.md?p=3) may issue and amend licenses, as appropriate, for closed-loop pumped storage [projects](/usc/16/410r–5.md?p=c-4). - (2) **Rule—** Not later than 180 days after October 23, 2018, the [Commission](/usc/16/410cc–1.md?p=3) shall issue a rule establishing an expedited process for issuing and amending licenses for closed-loop pumped storage [projects](/usc/16/410r–5.md?p=c-4) under this section. - (3) **Interagency task force—** In establishing the expedited process under this section, the [Commission](/usc/16/410cc–1.md?p=3) shall convene an interagency [task force](/usc/16/4702.md?p=15), with appropriate Federal and [State](/usc/16/6456.md?p=2) agencies and [Indian tribes](/usc/16/544.md?p=g) represented, to coordinate the regulatory processes associated with the authorizations required to construct and operate closed-loop pumped storage [projects](/usc/16/410r–5.md?p=c-4). - (4) **Length of process—** The [Commission](/usc/16/410cc–1.md?p=3) shall seek to ensure that the expedited process under this section will result in final decision on an application for a license by not later than 2 years after receipt of a completed application for such license. - (b) **Dam safety—** Before issuing any license for a closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4), the [Commission](/usc/16/410cc–1.md?p=3) shall assess the safety of existing dams and other structures related to the [project](/usc/16/410r–5.md?p=c-4) (including possible consequences associated with failure of such structures). - (c) **Exceptions from other requirements—** - (1) **In general—** In issuing or amending a license for a closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) pursuant to the expedited process established under this section, the [Commission](/usc/16/410cc–1.md?p=3) may grant an exception from any other requirement of this subchapter with respect to any part of the closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) (not including any dam or other impoundment). - (2) **Consultation—** In granting an exception under [paragraph (1)](#c-1), the [Commission](/usc/16/410cc–1.md?p=3) shall consult with the United States Fish and Wildlife Service, the National Marine [Fisheries](/usc/16/1383a.md?p=o-1) Service, and the [State](/usc/16/6456.md?p=2) agency exercising administration over the fish and wildlife [resources](/usc/16/410hhh–1.md?p=8) of the [State](/usc/16/6456.md?p=2) in which the closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) is or will be located, in the manner provided by the Fish and Wildlife Coordination Act ([16 U.S.C. 661](/usc/16/661.md) et seq.). - (3) **Terms and conditions—** In granting an exception under [paragraph (1)](#c-1), the [Commission](/usc/16/410cc–1.md?p=3) shall include in any such exception— - (A) such terms and conditions as the United States Fish and Wildlife Service, the National Marine [Fisheries](/usc/16/1383a.md?p=o-1) Service, and the [State](/usc/16/6456.md?p=2) agency described in [paragraph (2)](#c-2) each determine are appropriate to prevent loss of, or damage to, fish and wildlife [resources](/usc/16/410hhh–1.md?p=8) and to otherwise carry out the purposes of the Fish and Wildlife Coordination Act; and - (B) such terms and conditions as the [Commission](/usc/16/410cc–1.md?p=3) deems appropriate to ensure that such closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) continues to comply with the provisions of this section and terms and conditions included in any such exception. - (4) **Fees—** The [Commission](/usc/16/410cc–1.md?p=3), in [addition](/usc/16/410r–5.md?p=c-2) to the requirements of [section 803(e) of this title](/usc/16/803.md?p=e), shall establish fees which shall be paid by an applicant for a license for a closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) that is required to meet terms and conditions set by fish and wildlife agencies under [paragraph (3)](#c-3). Such fees shall be adequate to reimburse the fish and wildlife agencies referred to in [paragraph (3)](#c-3) for any reasonable costs incurred in connection with any studies or other reviews carried out by such agencies for purposes of compliance with this section. The fees shall, subject to annual appropriations Acts, be transferred to such agencies by the [Commission](/usc/16/410cc–1.md?p=3) for use solely for purposes of carrying out such studies and shall remain available until expended. - (d) **Transfers—** Notwithstanding [section 798 of this title](/usc/16/798.md), and regardless of whether the holder of a preliminary permit for a closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) claimed municipal preference under [section 800(a) of this title](/usc/16/800.md?p=a) when obtaining the permit, on request by a [municipality](/usc/16/2708.md?p=a-7), the [Commission](/usc/16/410cc–1.md?p=3) may, to facilitate development of a closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4)— - (1) add entities as joint permittees following issuance of a preliminary permit; and - (2) transfer a license in part to one or more nonmunicipal entities as co-[licensees](/usc/16/796.md?p=5) with a [municipality](/usc/16/2708.md?p=a-7), if the [municipality](/usc/16/2708.md?p=a-7) retains majority ownership of the [project](/usc/16/410r–5.md?p=c-4) for which the license was issued. - (e) **Interagency communications—** Interagency cooperation in the preparation of environmental documents under the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.) with respect to an application for a license for a closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) submitted pursuant to this section, and interagency communications relating to licensing process coordination pursuant to this section, shall not— - (1) be considered to be ex parte communications under [Commission](/usc/16/410cc–1.md?p=3) rules; or - (2) preclude an agency from participating in a licensing proceeding under this subchapter, providing that any agency participating as a party in a licensing proceeding under this subchapter shall, to the extent practicable, demonstrate a separation of staff cooperating with the [Commission](/usc/16/410cc–1.md?p=3) under the National Environmental Policy Act[^1] ([42 U.S.C. 4321](/usc/42/4321.md) et seq.) and staff participating in the applicable proceeding under this subchapter. - (f) **Developing abandoned mines for pumped storage—** - (1) **Workshop—** Not later than 6 months after October 23, 2018, the [Commission](/usc/16/410cc–1.md?p=3) shall hold a workshop to explore potential opportunities for development of closed-loop pumped storage [projects](/usc/16/410r–5.md?p=c-4) at abandoned mine sites. - (2) **Guidance—** Not later than 1 year after October 23, 2018, the [Commission](/usc/16/410cc–1.md?p=3) shall issue guidance to assist applicants for licenses or preliminary permits for closed-loop pumped storage [projects](/usc/16/410r–5.md?p=c-4) at abandoned mine sites. - (g) **Qualifying criteria for closed-loop pumped storage projects—** - (1) **In general—** The [Commission](/usc/16/410cc–1.md?p=3) shall establish criteria that a pumped storage [project](/usc/16/410r–5.md?p=c-4) shall meet in order to qualify as a closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) eligible for the expedited process established under this section. - (2) **Inclusions—** In establishing the criteria under [paragraph (1)](#g-1), the [Commission](/usc/16/410cc–1.md?p=3) shall include criteria requiring that the pumped storage [project](/usc/16/410r–5.md?p=c-4)— - (A) cause little to no change to existing surface and ground water flows and [uses](/usc/16/410hhh–1.md?p=10); and - (B) is unlikely to adversely affect species listed as a threatened species or endangered species under the Endangered Species Act of 1973 [[16 U.S.C. 1531](/usc/16/1531.md) et seq.]. - (h) **Savings clause—** Nothing in this section affects any authority of the [Commission](/usc/16/410cc–1.md?p=3) to license a closed-loop pumped storage [project](/usc/16/410r–5.md?p=c-4) under this subchapter. # §823g. Considerations for relicensing terms - (a) **In general—** In determining the term of a new license issued when an existing license under this subchapter expires, the [Commission](/usc/16/410cc–1.md?p=3) shall take into consideration, among other things— - (1) [project](/usc/16/410r–5.md?p=c-4)-related investments by the [licensee](/usc/16/796.md?p=5) under the new license; and - (2) [project](/usc/16/410r–5.md?p=c-4)-related investments by the [licensee](/usc/16/796.md?p=5) over the term of the existing license. - (b) **Equal weight—** The determination of the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (a)](#a) shall give equal weight to— - (1) investments by the [licensee](/usc/16/796.md?p=5) to implement the new license under this subchapter, including investments relating to redevelopment, new construction, new capacity, efficiency, modernization, rehabilitation or replacement of major equipment, safety improvements, or environmental, recreation, or other protection, mitigation, or enhancement measures required or authorized by the new license; and - (2) investments by the [licensee](/usc/16/796.md?p=5) over the term of the existing license (including any terms under annual licenses) that— - (A) resulted in redevelopment, new construction, new capacity, efficiency, modernization, rehabilitation or replacement of major equipment, safety improvements, or environmental, recreation, or other protection, mitigation, or enhancement measures conducted over the term of the existing license; and - (B) were not expressly considered by the [Commission](/usc/16/410cc–1.md?p=3) as contributing to the length of the existing license term in any order establishing or extending the existing license term. - (c) **Commission determination—** At the request of the [licensee](/usc/16/796.md?p=5), the [Commission](/usc/16/410cc–1.md?p=3) shall make a determination as to whether any planned, ongoing, or completed investment meets the criteria under [subsection (b)(2)](#b-2). Any determination under this subsection shall be issued within 60 days following receipt of the [licensee](/usc/16/796.md?p=5)’s request. When issuing its determination under this subsection, the [Commission](/usc/16/410cc–1.md?p=3) shall not assess the incremental number of years that the investment may add to the new license term. All such assessment shall occur only as provided in [subsection (a)](#a). # §824. Declaration of policy; application of subchapter - (a) **Federal regulation of transmission and sale of electric energy—** It is declared that the business of transmitting and selling electric energy for ultimate distribution to the public is affected with a public interest, and that Federal regulation of matters relating to generation to the extent provided in this subchapter and subchapter III of this chapter and of that part of such business which consists of the transmission of electric energy in interstate commerce and the sale of such energy at wholesale in interstate commerce is necessary in the public interest, such Federal regulation, however, to extend only to those matters which are not subject to regulation by the [States](/usc/16/544.md?p=r). - (b) **Use or sale of electric energy in interstate commerce—** - (1) The provisions of this subchapter shall apply to the transmission of electric energy in interstate commerce and to the [sale of electric energy at wholesale](#d) in interstate commerce, but except as provided in [paragraph (2)](#b-2) shall not apply to any other sale of electric energy or deprive a [State](/usc/16/6456.md?p=2) or [State commission](/usc/16/796.md?p=21) of its lawful authority now exercised over the exportation of hydroelectric energy which is transmitted across a [State](/usc/16/6456.md?p=2) line. The [Commission](/usc/16/410cc–1.md?p=3) shall have jurisdiction over all facilities for such transmission or sale of electric energy, but shall not have jurisdiction, except as specifically provided in this subchapter and subchapter III of this chapter, over facilities used for the generation of electric energy or over facilities used in local distribution or only for the transmission of electric energy in intrastate commerce, or over facilities for the transmission of electric energy consumed wholly by the transmitter. - (2) Notwithstanding [subsection (f)](#f), the provisions of sections [824b(a)(2)](/usc/16/824b.md?p=a-2), [824e(e)](/usc/16/824e.md?p=e), [824i](/usc/16/824i.md), [824j](/usc/16/824j.md), [824j–1](/usc/16/824j–1.md), [824k](/usc/16/824k.md), [824o](/usc/16/824o.md), [824o–1](/usc/16/824o–1.md), [824p](/usc/16/824p.md), [824q](/usc/16/824q.md), [824r](/usc/16/824r.md), [824s](/usc/16/824s.md), [824t](/usc/16/824t.md), [824u](/usc/16/824u.md), and [824v](/usc/16/824v.md) of this title shall apply to the entities described in such provisions, and such entities shall be subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) for purposes of carrying out such provisions and for purposes of applying the enforcement authorities of this chapter with respect to such provisions. Compliance with any order or rule of the [Commission](/usc/16/410cc–1.md?p=3) under the provisions of section [824b(a)(2)](/usc/16/824b.md?p=a-2), [824e(e)](/usc/16/824e.md?p=e), [824i](/usc/16/824i.md), [824j](/usc/16/824j.md), [824j–1](/usc/16/824j–1.md), [824k](/usc/16/824k.md), [824o](/usc/16/824o.md), [824o–1](/usc/16/824o–1.md), [824p](/usc/16/824p.md), [824q](/usc/16/824q.md), [824r](/usc/16/824r.md), [824s](/usc/16/824s.md), [824t](/usc/16/824t.md), [824u](/usc/16/824u.md), or [824v](/usc/16/824v.md) of this title, shall not make an [electric utility](/usc/16/796.md?p=22-A) or other entity subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) for any purposes other than the purposes specified in the preceding sentence. - (c) **Electric energy in interstate commerce—** For the purpose of this subchapter, electric energy shall be held to be transmitted in interstate commerce if transmitted from a [State](/usc/16/6456.md?p=2) and consumed at any point outside thereof; but only insofar as such transmission takes place within the United States. - (d) **“Sale of electric energy at wholesale” defined—** The term “sale of electric energy at wholesale” when used in this subchapter, means a sale of electric energy to any [person](/usc/16/450rr–1.md?p=b) for resale. - (e) **“Public utility” defined—** The term “public utility” when used in this subchapter and subchapter III of this chapter means any [person](/usc/16/450rr–1.md?p=b) who owns or operates facilities subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) under this subchapter (other than facilities subject to such jurisdiction solely by reason of section 824e(e), 824e(f),[^1] 824i, 824j, 824j–1, 824k, 824o, 824o–1, 824p, 824q, 824r, 824s, 824t, 824u, or 824v of this title). - (f) **United States, State, political subdivision of a State, or agency or instrumentality thereof exempt—** No provision in this subchapter shall apply to, or be deemed to include, the United States, a [State](/usc/16/6456.md?p=2) or any political [subdivision](/usc/16/539m–1.md?p=15) of a [State](/usc/16/6456.md?p=2), an electric cooperative that receives financing under the Rural Electrification Act of 1936 ([7 U.S.C. 901](/usc/7/901.md) et seq.) or that sells less than 4,000,000 megawatt hours of electricity per year, or any agency, authority, or instrumentality of any one or more of the foregoing, or any corporation which is wholly owned, directly or indirectly, by any one or more of the foregoing, or any officer, agent, or employee of any of the foregoing acting as such in the course of his official duty, unless such provision makes specific reference thereto. - (g) **Books and records—** - (1) Upon written order of a [State commission](/usc/16/796.md?p=21), a [State commission](/usc/16/796.md?p=21) may examine the books, accounts, memoranda, contracts, and records of— - (A) an [electric utility company](#g-5) subject to its regulatory authority under [State](/usc/16/6456.md?p=2) law, - (B) any [exempt wholesale generator](#g-5) selling energy at wholesale to such [electric utility](/usc/16/796.md?p=22-A), and - (C) any [electric utility company](#g-5), or [holding company](#g-5) thereof, which is an [associate company](#g-5) or [affiliate](#g-5) of an [exempt wholesale generator](#g-5) which sells electric energy to an [electric utility company](#g-5) referred to in [subparagraph (A)](#g-1-A), wherever located, if such examination is required for the effective discharge of the [State commission](/usc/16/796.md?p=21)’s regulatory responsibilities affecting the provision of electric service. - (2) Where a [State commission](/usc/16/796.md?p=21) issues an order pursuant to [paragraph (1)](#g-1), the [State commission](/usc/16/796.md?p=21) shall not publicly disclose trade secrets or sensitive commercial information. - (3) Any United States district court located in the [State](/usc/16/6456.md?p=2) in which the [State commission](/usc/16/796.md?p=21) referred to in [paragraph (1)](#g-1) is located shall have jurisdiction to enforce compliance with this subsection. - (4) Nothing in this section shall— - (A) preempt applicable [State](/usc/16/6456.md?p=2) law concerning the provision of records and other information; or - (B) in any way limit rights to obtain records and other information under Federal law, contracts, or otherwise. - (5) As used in this subsection the terms “affiliate”, “associate company”, “electric utility company”, “holding company”, “subsidiary company”, and “exempt wholesale generator” shall have the same meaning as when used in the [Public Utility](#e) Holding Company Act of 2005 [[42 U.S.C. 16451](/usc/42/16451.md) et seq.]. # §824a. Interconnection and coordination of facilities; emergencies; transmission to foreign countries - (a) **Regional districts; establishment; notice to State commissions—** For the purpose of assuring an abundant supply of electric energy throughout the United States with the greatest possible economy and with regard to the proper utilization and [conservation](/usc/16/6456.md?p=2) of natural [resources](/usc/16/410hhh–1.md?p=8), the [Commission](/usc/16/410cc–1.md?p=3) is empowered and directed to divide the country into regional districts for the voluntary interconnection and coordination of facilities for the generation, transmission, and sale of electric energy, and it may at any time thereafter, upon its own motion or upon application, make such modifications thereof as in its judgment will promote the public interest. Each such district shall embrace an [area](/usc/16/539m–1.md?p=1-A) which, in the judgment of the [Commission](/usc/16/410cc–1.md?p=3), can economically be served by such interconnection and coordinated electric facilities. It shall be the duty of the [Commission](/usc/16/410cc–1.md?p=3) to promote and encourage such interconnection and coordination within each such district and between such districts. Before establishing any such district and fixing or modifying the boundaries thereof the [Commission](/usc/16/410cc–1.md?p=3) shall give notice to the [State commission](/usc/16/796.md?p=21) of each [State](/usc/16/6456.md?p=2) situated wholly or in part within such district, and shall afford each such [State commission](/usc/16/796.md?p=21) reasonable opportunity to present its views and recommendations, and shall receive and consider such views and recommendations. - (b) **Sale or exchange of energy; establishing physical connections—** Whenever the [Commission](/usc/16/410cc–1.md?p=3), upon application of any [State commission](/usc/16/796.md?p=21) or of any [person](/usc/16/450rr–1.md?p=b) engaged in the transmission or sale of electric energy, and after notice to each [State commission](/usc/16/796.md?p=21) and [public utility](/usc/16/824.md?p=e) affected and after opportunity for hearing, finds such action necessary or appropriate in the public interest it may by order direct a [public utility](/usc/16/824.md?p=e) (if the [Commission](/usc/16/410cc–1.md?p=3) finds that no undue burden will be placed upon such [public utility](/usc/16/824.md?p=e) thereby) to establish physical connection of its transmission facilities with the facilities of one or more other [persons](/usc/16/450rr–1.md?p=b) engaged in the transmission or sale of electric energy, to sell energy to or exchange energy with such [persons](/usc/16/450rr–1.md?p=b): Provided, That the [Commission](/usc/16/410cc–1.md?p=3) shall have no authority to compel the enlargement of generating facilities for such purposes, nor to compel such [public utility](/usc/16/824.md?p=e) to sell or exchange energy when to do so would impair its ability to render adequate service to its customers. The [Commission](/usc/16/410cc–1.md?p=3) may prescribe the terms and conditions of the arrangement to be made between the [persons](/usc/16/450rr–1.md?p=b) affected by any such order, including the apportionment of cost between them and the compensation or reimbursement reasonably due to any of them. - (c) **Temporary connection and exchange of facilities during emergency—** - (1) During the continuance of any war in which the United States is engaged, or whenever the [Commission](/usc/16/410cc–1.md?p=3) determines that an emergency exists by reason of a sudden increase in the demand for electric energy, or a shortage of electric energy or of facilities for the generation or transmission of electric energy, or of fuel or water for generating facilities, or other causes, the [Commission](/usc/16/410cc–1.md?p=3) shall have authority, either upon its own motion or upon complaint, with or without notice, hearing, or report, to require by order such temporary connections of facilities and such generation, delivery, [interchange](/usc/16/521c.md?p=2), or transmission of electric energy as in its judgment will best meet the emergency and serve the public interest. If the parties affected by such order fail to agree upon the terms of any arrangement between them in carrying out such order, the [Commission](/usc/16/410cc–1.md?p=3), after hearing held either before or after such order takes effect, may prescribe by supplemental order such terms as it finds to be just and reasonable, including the compensation or reimbursement which should be paid to or by any such party. - (2) With respect to an order issued under this subsection that may result in a conflict with a requirement of any Federal, [State](/usc/16/6456.md?p=2), or local environmental law or regulation, the [Commission](/usc/16/410cc–1.md?p=3) shall ensure that such order requires generation, delivery, [interchange](/usc/16/521c.md?p=2), or transmission of electric energy only during hours necessary to meet the emergency and serve the public interest, and, to the maximum extent practicable, is consistent with any applicable Federal, [State](/usc/16/6456.md?p=2), or local environmental law or regulation and minimizes any adverse environmental impacts. - (3) To the extent any omission or action taken by a party, that is necessary to comply with an order issued under this subsection, including any omission or action taken to voluntarily comply with such order, results in noncompliance with, or causes such party to not comply with, any Federal, [State](/usc/16/6456.md?p=2), or local environmental law or regulation, such omission or action shall not be considered a [violation](/usc/16/620e.md?p=11) of such environmental law or regulation, or subject such party to any requirement, civil or criminal liability, or a citizen suit under such environmental law or regulation. - (4) - (A) An order issued under this subsection that may result in a conflict with a requirement of any Federal, [State](/usc/16/6456.md?p=2), or local environmental law or regulation shall expire not later than 90 days after it is issued. The [Commission](/usc/16/410cc–1.md?p=3) may renew or reissue such order pursuant to paragraphs [(1)](#c-1) and [(2)](#c-2) for subsequent periods, not to exceed 90 days for each period, as the [Commission](/usc/16/410cc–1.md?p=3) determines necessary to meet the emergency and serve the public interest. - (B) In renewing or reissuing an order under [subparagraph (A)](#c-4-A), the [Commission](/usc/16/410cc–1.md?p=3) shall consult with the primary Federal agency with expertise in the environmental interest protected by such law or regulation, and shall include in any such renewed or reissued order such conditions as such Federal agency determines necessary to minimize any adverse environmental impacts to the extent practicable. The conditions, if any, submitted by such Federal agency shall be made available to the public. The [Commission](/usc/16/410cc–1.md?p=3) may exclude such a condition from the renewed or reissued order if it determines that such condition would prevent the order from adequately addressing the emergency necessitating such order and provides in the order, or otherwise makes publicly available, an explanation of such determination. - (5) If an order issued under this subsection is subsequently stayed, modified, or set aside by a court pursuant to [section 825l](/usc/16/825l.md) of this title or any other provision of law, any omission or action previously taken by a party that was necessary to comply with the order while the order was in effect, including any omission or action taken to voluntarily comply with the order, shall remain subject to [paragraph (3)](#c-3). - (d) **Temporary connection during emergency by persons without jurisdiction of Commission—** During the continuance of any emergency requiring immediate action, any [person](/usc/16/450rr–1.md?p=b) or [municipality](/usc/16/2708.md?p=a-7) engaged in the transmission or sale of electric energy and not otherwise subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) may make such temporary connections with any [public utility](/usc/16/824.md?p=e) subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) or may construct such temporary facilities for the transmission of electric energy in interstate commerce as may be necessary or appropriate to meet such emergency, and shall not become subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) by reason of such temporary connection or temporary construction: Provided, That such temporary connection shall be discontinued or such temporary construction removed or otherwise disposed of upon the termination of such emergency: Provided further, That upon approval of the [Commission](/usc/16/410cc–1.md?p=3) permanent connections for emergency use only may be made hereunder. - (e) **Transmission of electric energy to foreign country—** After six months from August 26, 1935, no [person](/usc/16/450rr–1.md?p=b) shall transmit any electric energy from the United States to a foreign country without first having secured an order of the [Commission](/usc/16/410cc–1.md?p=3) authorizing it to do so. The [Commission](/usc/16/410cc–1.md?p=3) shall issue such order upon application unless, after opportunity for hearing, it finds that the proposed transmission would impair the sufficiency of electric supply within the United States or would impede or tend to impede the coordination in the public interest of facilities subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3). The [Commission](/usc/16/410cc–1.md?p=3) may by its order grant such application in whole or in part, with such modifications and upon such terms and conditions as the [Commission](/usc/16/410cc–1.md?p=3) may find necessary or appropriate, and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental orders in the premises as it may find necessary or appropriate. - (f) **Transmission or sale at wholesale of electric energy; regulation—** The ownership or operation of facilities for the transmission or sale at wholesale of electric energy which is (a) generated within a [State](/usc/16/6456.md?p=2) and transmitted from the [State](/usc/16/6456.md?p=2) across an international boundary and not thereafter transmitted into any other [State](/usc/16/6456.md?p=2), or (b) generated in a foreign country and transmitted across an international boundary into a [State](/usc/16/6456.md?p=2) and not thereafter transmitted into any other [State](/usc/16/6456.md?p=2), shall not make a [person](/usc/16/450rr–1.md?p=b) a [public utility](/usc/16/824.md?p=e) subject to regulation as such under other provisions of this subchapter. The [State](/usc/16/6456.md?p=2) within which any such facilities are located may regulate any such transaction insofar as such [State](/usc/16/6456.md?p=2) regulation does not conflict with the exercise of the [Commission](/usc/16/410cc–1.md?p=3)’s powers under or relating to [subsection (e)](#e). - (g) **Continuance of service—** In order to insure continuity of service to customers of [public utilities](/usc/16/824.md?p=e), the [Commission](/usc/16/410cc–1.md?p=3) shall require, by rule, each [public utility](/usc/16/824.md?p=e) to— - (1) report promptly to the [Commission](/usc/16/410cc–1.md?p=3) and any appropriate [State](/usc/16/6456.md?p=2) regulatory authorities any anticipated shortage of electric energy or capacity which would affect such utility’s capability of serving its wholesale customers, - (2) submit to the [Commission](/usc/16/410cc–1.md?p=3), and to any appropriate [State](/usc/16/6456.md?p=2) regulatory authority, and periodically revise, contingency plans respecting— - (A) shortages of electric energy or capacity, and - (B) circumstances which may result in such shortages, and - (3) accommodate any such shortages or circumstances in a manner which shall— - (A) give due consideration to the public health, safety, and welfare, and - (B) provide that all [persons](/usc/16/450rr–1.md?p=b) served directly or indirectly by such [public utility](/usc/16/824.md?p=e) will be treated, without undue prejudice or disadvantage. # §824a–1. Pooling - (a) **State laws—** The [Commission](/usc/16/410cc–1.md?p=3) may, on its own motion, and shall, on application of any [person](/usc/16/450rr–1.md?p=b) or governmental entity, after public notice and notice to the Governor of the affected [State](/usc/16/6456.md?p=2) and after affording an opportunity for public hearing, exempt [electric utilities](/usc/16/796.md?p=22-A), in whole or in part, from any provision of [State](/usc/16/6456.md?p=2) law, or from any [State](/usc/16/6456.md?p=2) rule or regulation, which prohibits or prevents the voluntary coordination of [electric utilities](/usc/16/796.md?p=22-A), including any agreement for central dispatch, if the [Commission](/usc/16/410cc–1.md?p=3) determines that such voluntary coordination is designed to obtain economical utilization of facilities and [resources](/usc/16/410hhh–1.md?p=8) in any [area](/usc/16/539m–1.md?p=1-A). No such exemption may be granted if the [Commission](/usc/16/410cc–1.md?p=3) finds that such provision of [State](/usc/16/6456.md?p=2) law, or rule or regulation— - (1) is required by any authority of Federal law, or - (2) is designed to protect public health, safety, or welfare, or the environment or conserve energy or is designed to mitigate the effects of emergencies resulting from fuel shortages. - (b) **Pooling study—** - (1) The [Commission](/usc/16/410cc–1.md?p=3), in consultation with the reliability [councils](/usc/16/5102.md?p=5) established under section 202(a) of the Federal Power Act [[16 U.S.C. 824a](/usc/16/824a.md)], the [Secretary](/usc/16/410r–5.md?p=c-1), and the [electric utility](/usc/16/796.md?p=22-A) industry shall study the opportunities for— - (A) [conservation](/usc/16/6456.md?p=2) of energy, - (B) optimization in the efficiency of use of facilities and [resources](/usc/16/410hhh–1.md?p=8), and - (C) increased reliability, through pooling arrangements. Not later than 18 months after November 9, 1978, the [Commission](/usc/16/410cc–1.md?p=3) shall submit a report containing the results of such study to the President and the Congress. - (2) The [Commission](/usc/16/410cc–1.md?p=3) may recommend to [electric utilities](/usc/16/796.md?p=22-A) that such utilities should voluntarily enter into negotiations where the opportunities referred to in [paragraph (1)](#b-1) exist. The [Commission](/usc/16/410cc–1.md?p=3) shall report annually to the President and the Congress regarding any such recommendations and subsequent actions taken by [electric utilities](/usc/16/796.md?p=22-A), by the [Commission](/usc/16/410cc–1.md?p=3), and by the [Secretary](/usc/16/410r–5.md?p=c-1) under this Act, the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.], and any other provision of law. Such annual reports shall be included in the [Commission](/usc/16/410cc–1.md?p=3)’s annual report required under the Department of Energy Organization Act [[42 U.S.C. 7101](/usc/42/7101.md) et seq.]. # §824a–2. Reliability - (a) **Study—** - (1) The [Secretary](/usc/16/410r–5.md?p=c-1), in consultation with the [Commission](/usc/16/410cc–1.md?p=3), shall conduct a study with respect to— - (A) the level of reliability appropriate to adequately serve the needs of electric consumers, taking into account cost effectiveness and the need for energy [conservation](/usc/16/6456.md?p=2), - (B) the various methods which could be used in order to achieve such level of reliability and the cost effectiveness of such methods, and - (C) the various procedures that might be used in case of an emergency outage to minimize the public disruption and economic loss that might be caused by such an outage and the cost effectiveness of such procedures. Such study shall be completed and submitted to the President and the Congress not later than 18 months after November 9, 1978. Before such submittal the [Secretary](/usc/16/410r–5.md?p=c-1) shall provide an opportunity for public comment on the results of such study. - (2) The study under [paragraph (1)](#a-1) shall include consideration of the following: - (A) the cost effectiveness of investments in each of the components involved in providing adequate and reliable electric service, including generation, transmission, and distribution facilities, and devices available to the electric consumer; - (B) the environmental and other effects of the investments considered under [subparagraph (A)](#a-2-A); - (C) various types of [electric utility](/usc/16/796.md?p=22-A) [systems](/usc/16/668ee.md?p=14) in terms of generation, transmission, distribution and customer mix, the extent to which differences in reliability levels may be desirable, and the cost-effectiveness of the various methods which could be used to decrease the number and severity of any outages among the various types of [systems](/usc/16/668ee.md?p=14); - (D) alternatives to adding new generation facilities to achieve such desired levels of reliability (including [conservation](/usc/16/6456.md?p=2)); - (E) the cost-effectiveness of adding a number of small, decentralized conventional and nonconventional generating [units](/usc/16/430f–7.md?p=4) rather than a small number of large generating [units](/usc/16/430f–7.md?p=4) with a similar total megawatt capacity for achieving the desired level of reliability; and - (F) any standards for [electric utility](/usc/16/796.md?p=22-A) reliability used by, or suggested for use by, the [electric utility](/usc/16/796.md?p=22-A) industry in terms of cost-effectiveness in achieving the desired level of reliability, including equipment standards, standards for operating procedures and training of personnel, and standards relating the number and severity of outages to periods of time. - (b) **Examination of reliability issues by reliability councils—** The [Secretary](/usc/16/410r–5.md?p=c-1), in consultation with the [Commission](/usc/16/410cc–1.md?p=3), may, from time to time, request the reliability [councils](/usc/16/5102.md?p=5) established under section 202(a) of the Federal Power Act [[16 U.S.C. 824a(a)](/usc/16/824a.md?p=a) of this title] or other appropriate [persons](/usc/16/450rr–1.md?p=b) (including Federal agencies) to examine and report to him concerning any [electric utility](/usc/16/796.md?p=22-A) reliability issue. The [Secretary](/usc/16/410r–5.md?p=c-1) shall report to the Congress (in its annual report or in the report required under [subsection (a)](#a) if appropriate) the results of any examination under the preceding sentence. - (c) **Department of Energy recommendations—** The [Secretary](/usc/16/410r–5.md?p=c-1), in consultation with the [Commission](/usc/16/410cc–1.md?p=3), and after opportunity for public comment, may recommend industry standards for reliability to the [electric utility](/usc/16/796.md?p=22-A) industry, including standards with respect to equipment, operating procedures and training of personnel, and standards relating to the level or levels of reliability appropriate to adequately and reliably serve the needs of electric consumers. The [Secretary](/usc/16/410r–5.md?p=c-1) shall include in his annual report— - (1) any recommendations made under this subsection or any recommendations respecting [electric utility](/usc/16/796.md?p=22-A) reliability problems under any other provision of law, and - (2) a description of actions taken by [electric utilities](/usc/16/796.md?p=22-A) with respect to such recommendations. # §824a–3. Cogeneration and small power production - (a) **Cogeneration and small power production rules—** Not later than 1 year after November 9, 1978, the [Commission](/usc/16/410cc–1.md?p=3) shall prescribe, and from time to time thereafter revise, such rules as it determines necessary to encourage cogeneration and small power production, and to encourage geothermal [small power production facilities](#l) of not more than 80 megawatts capacity, which rules require [electric utilities](/usc/16/796.md?p=22-A) to offer to— - (1) sell electric energy to [qualifying cogeneration facilities](#l) and [qualifying small power production facilities](#l)[^1] and - (2) purchase electric energy from such facilities. Such rules shall be prescribed, after consultation with [representatives](/usc/16/5609.md?p=13) of Federal and [State](/usc/16/6456.md?p=2) regulatory agencies having ratemaking authority for [electric utilities](/usc/16/796.md?p=22-A), and after public notice and a reasonable opportunity for interested [persons](/usc/16/450rr–1.md?p=b) (including [State](/usc/16/6456.md?p=2) and Federal agencies) to submit oral as well as written data, views, and arguments. Such rules shall include provisions respecting minimum reliability of [qualifying cogeneration facilities](#l) and [qualifying small power production facilities](#l) (including reliability of such facilities during emergencies) and rules respecting reliability of electric energy service to be available to such facilities from [electric utilities](/usc/16/796.md?p=22-A) during emergencies. Such rules may not authorize a [qualifying cogeneration facility](#l) or [qualifying small power production facility](#l) to make any sale for purposes other than resale. - (b) **Rates for purchases by electric utilities—** The rules prescribed under [subsection (a)](#a) shall insure that, in requiring any [electric utility](/usc/16/796.md?p=22-A) to offer to purchase electric energy from any [qualifying cogeneration facility](#l) or [qualifying small power production facility](#l), the rates for such purchase— - (1) shall be just and reasonable to the electric consumers of the [electric utility](/usc/16/796.md?p=22-A) and in the public interest, and - (2) shall not discriminate against [qualifying cogenerators](#l) or [qualifying small power producers](#l). No such rule prescribed under [subsection (a)](#a) shall provide for a rate which exceeds the incremental cost to the [electric utility](/usc/16/796.md?p=22-A) of alternative electric energy. - (c) **Rates for sales by utilities—** The rules prescribed under [subsection (a)](#a) shall insure that, in requiring any [electric utility](/usc/16/796.md?p=22-A) to offer to sell electric energy to any [qualifying cogeneration facility](#l) or [qualifying small power production facility](#l), the rates for such sale— - (1) shall be just and reasonable and in the public interest, and - (2) shall not discriminate against the [qualifying cogenerators](#l) or [qualifying small power producers](#l). - (d) **“Incremental cost of alternative electric energy” defined—** For purposes of this section, the term “incremental cost of alternative electric energy” means, with respect to electric energy purchased from a [qualifying cogenerator](#l) or [qualifying small power producer](#l), the cost to the [electric utility](/usc/16/796.md?p=22-A) of the electric energy which, but for the purchase from such cogenerator or small power producer, such utility would generate or purchase from another source. - (e) **Exemptions—** - (1) Not later than 1 year after November 9, 1978, and from time to time thereafter, the [Commission](/usc/16/410cc–1.md?p=3) shall, after consultation with [representatives](/usc/16/5609.md?p=13) of [State](/usc/16/6456.md?p=2) regulatory authorities, [electric utilities](/usc/16/796.md?p=22-A), [owners](/usc/16/429b–3.md?p=4) of [cogeneration facilities](#l) and [owners](/usc/16/429b–3.md?p=4) of [small power production facilities](#l), and after public notice and a reasonable opportunity for interested [persons](/usc/16/450rr–1.md?p=b) (including [State](/usc/16/6456.md?p=2) and Federal agencies) to submit oral as well as written data, views, and arguments, prescribe rules under which geothermal [small power production facilities](#l) of not more than 80 megawatts capacity, [qualifying cogeneration facilities](#l), and [qualifying small power production facilities](#l) are exempted in whole or part from the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.], from the [Public Utility](/usc/16/824.md?p=e) Holding Company Act,[^2] from [State](/usc/16/6456.md?p=2) laws and regulations respecting the rates, or respecting the financial or organizational regulation, of [electric utilities](/usc/16/796.md?p=22-A), or from any combination of the foregoing, if the [Commission](/usc/16/410cc–1.md?p=3) determines such exemption is necessary to encourage cogeneration and small power production. - (2) No [qualifying small power production facility](#l) (other than a [qualifying small power production facility](#l) which is an eligible solar, wind, waste, or geothermal facility as defined in section 3(17)(E) of the Federal Power Act [[16 U.S.C. 796(17)(E)](/usc/16/796.md?p=17-E)]) which has a power production capacity which, together with any other facilities located at the same site (as determined by the [Commission](/usc/16/410cc–1.md?p=3)), exceeds 30 megawatts, or 80 megawatts for a [qualifying small power production facility](#l) using geothermal energy as the [primary energy source](#l), may be exempted under rules under [paragraph (1)](#e-1) from any provision of law or regulation referred to in [paragraph (1)](#e-1), except that any [qualifying small power production facility](#l) which produces electric energy solely by the use of biomass as a [primary energy source](#l), may be exempted by the [Commission](/usc/16/410cc–1.md?p=3) under such rules from the [Public Utility](/usc/16/824.md?p=e) Holding Company Act[^2] and from [State](/usc/16/6456.md?p=2) laws and regulations referred to in such [paragraph (1)](#e-1). - (3) No [qualifying small power production facility](#l) or [qualifying cogeneration facility](#l) may be exempted under this subsection from— - (A) any [State](/usc/16/6456.md?p=2) law or regulation in effect in a [State](/usc/16/6456.md?p=2) pursuant to [subsection (f)](#f), - (B) the provisions of section 210, 211, or 212 of the Federal Power Act [[16 U.S.C. 824i](/usc/16/824i.md), 824j, or 824k] or the necessary authorities for enforcement of any such provision under the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.], or - (C) any license or permit requirement under part I of the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.] any provision under such Act related to such a license or permit requirement, or the necessary authorities for enforcement of any such requirement. - (f) **Implementation of rules for qualifying cogeneration and qualifying small power production facilities—** - (1) Beginning on or before the date one year after any rule is prescribed by the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (a)](#a) or revised under such subsection, each [State](/usc/16/6456.md?p=2) regulatory authority shall, after notice and opportunity for public hearing, implement such rule (or revised rule) for each [electric utility](/usc/16/796.md?p=22-A) for which it has ratemaking authority. - (2) Beginning on or before the date one year after any rule is prescribed by the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (a)](#a) or revised under such subsection, each nonregulated [electric utility](/usc/16/796.md?p=22-A) shall, after notice and opportunity for public hearing, implement such rule (or revised rule). - (g) **Judicial review and enforcement—** - (1) Judicial review may be obtained respecting any proceeding conducted by a [State](/usc/16/6456.md?p=2) regulatory authority or nonregulated [electric utility](/usc/16/796.md?p=22-A) for purposes of implementing any requirement of a rule under [subsection (a)](#a) in the same manner, and under the same requirements, as judicial review may be obtained under [section 2633 of this title](/usc/16/2633.md) in the case of a proceeding to which [section 2633 of this title](/usc/16/2633.md) applies. - (2) Any [person](/usc/16/450rr–1.md?p=b) (including the [Secretary](/usc/16/410r–5.md?p=c-1)) may bring an action against any [electric utility](/usc/16/796.md?p=22-A), [qualifying small power producer](#l), or [qualifying cogenerator](#l) to enforce any requirement established by a [State](/usc/16/6456.md?p=2) regulatory authority or nonregulated [electric utility](/usc/16/796.md?p=22-A) pursuant to [subsection (f)](#f). Any such action shall be brought only in the manner, and under the requirements, as provided under [section 2633 of this title](/usc/16/2633.md) with respect to an action to which [section 2633 of this title](/usc/16/2633.md) applies. - (h) **Commission enforcement—** - (1) For purposes of enforcement of any rule prescribed by the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (a)](#a) with respect to any operations of an [electric utility](/usc/16/796.md?p=22-A), a [qualifying cogeneration facility](#l) or a [qualifying small power production facility](#l) which are subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) under part II of the Federal Power Act [[16 U.S.C. 824](/usc/16/824.md) et seq.], such rule shall be treated as a rule under the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.]. Nothing in [subsection (g)](#g) shall apply to so much of the operations of an [electric utility](/usc/16/796.md?p=22-A), a [qualifying cogeneration facility](#l) or a [qualifying small power production facility](#l) as are subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) under part II of the Federal Power Act. - (2) - (A) The [Commission](/usc/16/410cc–1.md?p=3) may enforce the requirements of [subsection (f)](#f) against any [State](/usc/16/6456.md?p=2) regulatory authority or nonregulated [electric utility](/usc/16/796.md?p=22-A). For purposes of any such enforcement, the requirements of [subsection (f)(1)](#f-1) shall be treated as a rule enforceable under the Federal Power Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.]. For purposes of any such action, a [State](/usc/16/6456.md?p=2) regulatory authority or nonregulated [electric utility](/usc/16/796.md?p=22-A) shall be treated as a [person](/usc/16/450rr–1.md?p=b) within the meaning of the Federal Power Act. No enforcement action may be brought by the [Commission](/usc/16/410cc–1.md?p=3) under this section other than— - (i) an action against the [State](/usc/16/6456.md?p=2) regulatory authority or nonregulated [electric utility](/usc/16/796.md?p=22-A) for failure to comply with the requirements of [subsection (f)](#f)[^1] or - (ii) an action under [paragraph (1)](#h-1). - (B) Any [electric utility](/usc/16/796.md?p=22-A), [qualifying cogenerator](#l), or [qualifying small power producer](#l) may petition the [Commission](/usc/16/410cc–1.md?p=3) to enforce the requirements of [subsection (f)](#f) as provided in subparagraph (A) of this paragraph. If the [Commission](/usc/16/410cc–1.md?p=3) does not initiate an enforcement action under [subparagraph (A)](#h-2-A) against a [State](/usc/16/6456.md?p=2) regulatory authority or nonregulated [electric utility](/usc/16/796.md?p=22-A) within 60 days following the date on which a petition is filed under this subparagraph with respect to such authority, the petitioner may bring an action in the appropriate United States district court to require such [State](/usc/16/6456.md?p=2) regulatory authority or nonregulated [electric utility](/usc/16/796.md?p=22-A) to comply with such requirements, and such court may issue such injunctive or other relief as may be appropriate. The [Commission](/usc/16/410cc–1.md?p=3) may intervene as a matter of right in any such action. - (i) **Federal contracts—** No contract between a Federal agency and any [electric utility](/usc/16/796.md?p=22-A) for the sale of electric energy by such Federal agency for resale which is entered into after November 9, 1978, may contain any provision which will have the effect of preventing the implementation of any rule under this section with respect to such utility. Any provision in any such contract which has such effect shall be null and void. - (j) **New dams and diversions—** Except for a hydroelectric [project](/usc/16/410r–5.md?p=c-4) located at a Government dam (as defined in section 3(10) of the Federal Power Act [[16 U.S.C. 796(10)](/usc/16/796.md?p=10)]) at which non-Federal hydroelectric development is permissible, this section shall not apply to any hydroelectric [project](/usc/16/410r–5.md?p=c-4) which impounds or diverts the water of a natural watercourse by means of a [new dam or diversion](#k) unless the [project](/usc/16/410r–5.md?p=c-4) meets each of the following requirements: - (1) **No substantial adverse effects—** At the time of issuance of the license or exemption for the [project](/usc/16/410r–5.md?p=c-4), the [Commission](/usc/16/410cc–1.md?p=3) finds that the [project](/usc/16/410r–5.md?p=c-4) will not have substantial adverse effects on the environment, including recreation and water quality. Such finding shall be made by the [Commission](/usc/16/410cc–1.md?p=3) after taking into consideration terms and conditions imposed under either paragraph (3) of this subsection or section 10 of the Federal Power Act [[16 U.S.C. 803](/usc/16/803.md)] (whichever is appropriate as required by that Act [[16 U.S.C. 791a](/usc/16/791a.md) et seq.] or the Electric Consumers Protection Act of 1986) and compliance with other environmental requirements applicable to the [project](/usc/16/410r–5.md?p=c-4). - (2) **Protected rivers—** At the time the application for a license or exemption for the [project](/usc/16/410r–5.md?p=c-4) is accepted by the [Commission](/usc/16/410cc–1.md?p=3) (in accordance with the [Commission](/usc/16/410cc–1.md?p=3)’s regulations and procedures in effect on January 1, 1986, including those relating to environmental consultation), such [project](/usc/16/410r–5.md?p=c-4) is not located on either of the following: - (A) Any segment of a natural watercourse which is included in (or designated for potential inclusion in) a [State](/usc/16/6456.md?p=2) or national wild and scenic river [system](/usc/16/668ee.md?p=14). - (B) Any segment of a natural watercourse which the [State](/usc/16/6456.md?p=2) has determined, in accordance with applicable [State](/usc/16/6456.md?p=2) law, to possess unique natural, recreational, cultural, or scenic attributes which would be adversely affected by hydroelectric development. - (3) **Fish and wildlife terms and conditions—** The [project](/usc/16/410r–5.md?p=c-4) meets the terms and conditions set by fish and wildlife agencies under the same procedures as provided for under section 30(c) of the Federal Power Act [[16 U.S.C. 823a(c)](/usc/16/823a.md?p=c)]. - (k) **“New dam or diversion” defined—** For purposes of this section, the term “new dam or diversion” means a dam or diversion which requires, for purposes of installing any hydroelectric power [project](/usc/16/410r–5.md?p=c-4), any construction, or enlargement of any impoundment or diversion structure (other than repairs or reconstruction or the [addition](/usc/16/410r–5.md?p=c-2) of flashboards or similar adjustable devices)[^3] - (l) **Definitions—** For purposes of this section, the terms “small power production facility”, “qualifying small power production facility”, “qualifying small power producer”, “primary energy source”, “cogeneration facility”, “qualifying cogeneration facility”, and “qualifying cogenerator” have the respective meanings provided for such terms under section 3(17) and (18) of the Federal Power Act [[16 U.S.C. 796(17)](/usc/16/796.md?p=17), (18)]. - (m) **Termination of mandatory purchase and sale requirements—** - (1) **Obligation to purchase—** After August 8, 2005, no [electric utility](/usc/16/796.md?p=22-A) shall be required to enter into a new contract or obligation to purchase electric energy from a [qualifying cogeneration facility](#l) or a [qualifying small power production facility](#l) under this section if the [Commission](/usc/16/410cc–1.md?p=3) finds that the [qualifying cogeneration facility](#l) or [qualifying small power production facility](#l) has nondiscriminatory access to— - (A) - (i) independently administered, auction-based day ahead and real time wholesale markets for the sale of electric energy; and (ii) wholesale markets for long-term sales of capacity and electric energy; or - (B) - (i) transmission and interconnection services that are provided by a [Commission](/usc/16/410cc–1.md?p=3)-approved regional transmission entity and administered pursuant to an open access transmission tariff that affords nondiscriminatory treatment to all customers; and (ii) competitive wholesale markets that provide a meaningful opportunity to sell capacity, including long-term and short-term sales, and electric energy, including long-term, short-term and real-time sales, to buyers other than the utility to which the [qualifying facility](/usc/16/4903.md?p=5) is interconnected. In determining whether a meaningful opportunity to sell exists, the [Commission](/usc/16/410cc–1.md?p=3) shall consider, among other factors, evidence of transactions within the relevant market; or - (C) wholesale markets for the sale of capacity and electric energy that are, at a minimum, of comparable competitive quality as markets described in subparagraphs [(A)](#m-1-A) and [(B)](#m-1-B). - (2) **Revised purchase and sale obligation for new facilities—** - (A) After August 8, 2005, no [electric utility](/usc/16/796.md?p=22-A) shall be required pursuant to this section to enter into a new contract or obligation to purchase from or sell electric energy to a facility that is not an [existing qualifying cogeneration facility](#m-2-B) unless the facility meets the criteria for [qualifying cogeneration facilities](#l) established by the [Commission](/usc/16/410cc–1.md?p=3) pursuant to the rulemaking required by [subsection (n)](#n). - (B) For the purposes of this paragraph, the term “existing qualifying cogeneration facility” means a facility that— - (i) was a [qualifying cogeneration facility](#l) on August 8, 2005; or - (ii) had filed with the [Commission](/usc/16/410cc–1.md?p=3) a notice of self-certification, self recertification or an application for [Commission](/usc/16/410cc–1.md?p=3) certification under [18 CFR 292.207](/cfr/18/292.207.md) prior to the date on which the [Commission](/usc/16/410cc–1.md?p=3) issues the final rule required by [subsection (n)](#n). - (3) **Commission review—** Any [electric utility](/usc/16/796.md?p=22-A) may file an application with the [Commission](/usc/16/410cc–1.md?p=3) for relief from the mandatory purchase obligation pursuant to this subsection on a service territory-wide basis. Such application shall set forth the factual basis upon which relief is requested and describe why the conditions set forth in subparagraph [(A)](#m-1-A), [(B)](#m-1-B), or [(C)](#m-1-C) of paragraph (1) of this subsection have been met. After notice, including sufficient notice to potentially affected [qualifying cogeneration facilities](#l) and [qualifying small power production facilities](#l), and an opportunity for comment, the [Commission](/usc/16/410cc–1.md?p=3) shall make a final determination within 90 days of such application regarding whether the conditions set forth in subparagraph [(A)](#m-1-A), [(B)](#m-1-B), or [(C)](#m-1-C) of paragraph (1) have been met. - (4) **Reinstatement of obligation to purchase—** At any time after the [Commission](/usc/16/410cc–1.md?p=3) makes a finding under [paragraph (3)](#m-3) relieving an [electric utility](/usc/16/796.md?p=22-A) of its obligation to purchase electric energy, a [qualifying cogeneration facility](#l), a [qualifying small power production facility](#l), a [State](/usc/16/6456.md?p=2) agency, or any other affected [person](/usc/16/450rr–1.md?p=b) may apply to the [Commission](/usc/16/410cc–1.md?p=3) for an order reinstating the [electric utility](/usc/16/796.md?p=22-A)’s obligation to purchase electric energy under this section. Such application shall set forth the factual basis upon which the application is based and describe why the conditions set forth in subparagraph [(A)](#m-1-A), [(B)](#m-1-B), or [(C)](#m-1-C) of paragraph (1) of this subsection are no longer met. After notice, including sufficient notice to potentially affected utilities, and opportunity for comment, the [Commission](/usc/16/410cc–1.md?p=3) shall issue an order within 90 days of such application reinstating the [electric utility](/usc/16/796.md?p=22-A)’s obligation to purchase electric energy under this section if the [Commission](/usc/16/410cc–1.md?p=3) finds that the conditions set forth in subparagraphs [(A)](#m-1-A), [(B)](#m-1-B) or [(C)](#m-1-C) of paragraph (1) which relieved the obligation to purchase, are no longer met. - (5) **Obligation to sell—** After August 8, 2005, no [electric utility](/usc/16/796.md?p=22-A) shall be required to enter into a new contract or obligation to sell electric energy to a [qualifying cogeneration facility](#l) or a [qualifying small power production facility](#l) under this section if the [Commission](/usc/16/410cc–1.md?p=3) finds that— - (A) competing retail electric suppliers are willing and able to sell and deliver electric energy to the [qualifying cogeneration facility](#l) or [qualifying small power production facility](#l); and - (B) the [electric utility](/usc/16/796.md?p=22-A) is not required by [State](/usc/16/6456.md?p=2) law to sell electric energy in its service territory. - (6) **No effect on existing rights and remedies—** Nothing in this subsection affects the rights or remedies of any party under any contract or obligation, in effect or pending approval before the appropriate [State](/usc/16/6456.md?p=2) regulatory authority or non-regulated [electric utility](/usc/16/796.md?p=22-A) on August 8, 2005, to purchase electric energy or capacity from or to sell electric energy or capacity to a [qualifying cogeneration facility](#l) or [qualifying small power production facility](#l) under this Act (including the right to recover costs of purchasing electric energy or capacity). - (7) **Recovery of costs—** - (A) The [Commission](/usc/16/410cc–1.md?p=3) shall issue and enforce such regulations as are necessary to ensure that an [electric utility](/usc/16/796.md?p=22-A) that purchases electric energy or capacity from a [qualifying cogeneration facility](#l) or [qualifying small power production facility](#l) in accordance with any legally enforceable obligation entered into or imposed under this section recovers all prudently incurred costs associated with the purchase. - (B) A regulation under [subparagraph (A)](#m-7-A) shall be enforceable in accordance with the provisions of law applicable to enforcement of regulations under the Federal Power Act ([16 U.S.C. 791a](/usc/16/791a.md) et seq.). - (n) **Rulemaking for new qualifying facilities—** - (1) - (A) Not later than 180 days after August 8, 2005, the [Commission](/usc/16/410cc–1.md?p=3) shall issue a rule revising the criteria in [18 CFR 292.205](/cfr/18/292.205.md) for new [qualifying cogeneration facilities](#l) seeking to sell electric energy pursuant to this section to ensure— - (i) that the thermal energy output of a new [qualifying cogeneration facility](#l) is used in a productive and beneficial manner; - (ii) the electrical, thermal, and chemical output of the [cogeneration facility](#l) is used fundamentally for industrial, commercial, or institutional purposes and is not intended fundamentally for sale to an [electric utility](/usc/16/796.md?p=22-A), taking into account technological, efficiency, economic, and variable thermal energy requirements, as well as [State](/usc/16/6456.md?p=2) laws applicable to sales of electric energy from a [qualifying facility](/usc/16/4903.md?p=5) to its host facility; and - (iii) continuing progress in the development of efficient electric energy generating technology. - (B) The rule issued pursuant to paragraph (1)(A) of this subsection shall be applicable only to facilities that seek to sell electric energy pursuant to this section. For all other purposes, except as specifically provided in [subsection (m)(2)(A)](#m-2-A), [qualifying facility](/usc/16/4903.md?p=5) status shall be determined in accordance with the rules and regulations of this Act. - (2) Notwithstanding rule revisions under [paragraph (1)](#n-1), the [Commission](/usc/16/410cc–1.md?p=3)’s criteria for [qualifying cogeneration facilities](#l) in effect prior to the date on which the [Commission](/usc/16/410cc–1.md?p=3) issues the final rule required by [paragraph (1)](#n-1) shall continue to apply to any [cogeneration facility](#l) that— - (A) was a [qualifying cogeneration facility](#l) on August 8, 2005, or - (B) had filed with the [Commission](/usc/16/410cc–1.md?p=3) a notice of self-certification, self-recertification or an application for [Commission](/usc/16/410cc–1.md?p=3) certification under [18 CFR 292.207](/cfr/18/292.207.md) prior to the date on which the [Commission](/usc/16/410cc–1.md?p=3) issues the final rule required by [paragraph (1)](#n-1). # §824a–4. Seasonal diversity electricity exchange - (a) **Authority—** The [Secretary](/usc/16/410r–5.md?p=c-1) may [acquire](/usc/16/620e.md?p=1) rights-of-way by purchase, including eminent domain, through North Dakota, South Dakota, and Nebraska for transmission facilities for the seasonal diversity exchange of electric power to and from Canada if he determines— - (1) after opportunity for public hearing— - (A) that the exchange is in the public interest and would further the purposes referred to in section [2611(1)](/usc/16/2611.md?p=1) and [(2)](/usc/16/2611.md?p=2) of this title and that the [acquisition](/usc/16/620e.md?p=1) of such rights-of-way and the construction and operation of such transmission facilities for such purposes is otherwise in the public interest, - (B) that a permit has been issued in accordance with [subsection (b)](#b) for such construction, operation, maintenance, and connection of the facilities at the border for the transmission of electric energy between the United States and Canada as is necessary for such exchange of electric power, and - (C) that each affected [State](/usc/16/6456.md?p=2) has approved the portion of the transmission route located in each [State](/usc/16/6456.md?p=2) in accordance with applicable [State](/usc/16/6456.md?p=2) law, or if there is no such applicable [State](/usc/16/6456.md?p=2) law in such [State](/usc/16/6456.md?p=2), the Governor has approved such portion; and - (2) after consultation with the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior and the heads of other affected Federal agencies, that the [Secretary](/usc/16/410r–5.md?p=c-1) of the Interior and the heads of such,[^1] other agencies concur in writing in the location of such portion of the transmission facilities as crosses Federal land under the jurisdiction of such [Secretary](/usc/16/410r–5.md?p=c-1) or such other Federal agency, as the case may be. The [Secretary](/usc/16/410r–5.md?p=c-1) shall provide to any [State](/usc/16/6456.md?p=2) such cooperation and technical assistance as the [State](/usc/16/6456.md?p=2) may request and as he determines appropriate in the selection of a transmission route. If the transmission route approved by any [State](/usc/16/6456.md?p=2) does not appear to be feasible and in the public interest, the [Secretary](/usc/16/410r–5.md?p=c-1) shall encourage such [State](/usc/16/6456.md?p=2) to review such route and to develop a route that is feasible and in the public interest. Any exercise by the [Secretary](/usc/16/410r–5.md?p=c-1) of the power of eminent domain under this section shall be in accordance with other applicable provisions of Federal law. The [Secretary](/usc/16/410r–5.md?p=c-1) shall provide public notice of his intention to [acquire](/usc/16/620e.md?p=1) any right-of-way before exercising such power of eminent domain with respect to such right-of-way. - (b) **Permit—** Notwithstanding any transfer of functions under the first sentence of section 301(b) of the Department of Energy Organization Act [[42 U.S.C. 7151(b)](/usc/42/7151.md?p=b)], no permit referred to in [subsection (a)(1)(B)](#a-1-B) may be issued unless the [Commission](/usc/16/410cc–1.md?p=3) has conducted hearings and made the findings required under section 202(e) of the Federal Power Act [[16 U.S.C. 824a(e)](/usc/16/824a.md?p=e)] and under the applicable execution order respecting the construction, operation, maintenance, or connection at the borders of the United States of facilities for the transmission of electric energy between the United States and a foreign country. Any finding of the [Commission](/usc/16/410cc–1.md?p=3) under an applicable executive order referred to in this subsection shall be treated for purposes of judicial review as an order issued under [section 202(e)](/usc/16/202.md) of the Federal Power Act. - (c) **Timely acquisition by other means—** The [Secretary](/usc/16/410r–5.md?p=c-1) may not [acquire](/usc/16/620e.md?p=1) any rights-of-day[^2] under this section unless he determines that the holder or holders of a permit referred to in [subsection (a)(1)(B)](#a-1-B) are unable to [acquire](/usc/16/620e.md?p=1) such rights-of-way under [State](/usc/16/6456.md?p=2) condemnation authority, or after reasonable opportunity for negotiation, without unreasonably delaying construction, taking into consideration the impact of such delay on completion of the facilities in a timely fashion. - (d) **Payments by permittees—** - (1) The property interest acquired by the [Secretary](/usc/16/410r–5.md?p=c-1) under this section (whether by eminent domain or other purchase) shall be transferred by the [Secretary](/usc/16/410r–5.md?p=c-1) to the holder of a permit referred to in [subsection (b)](#b) if such holder has made payment to the [Secretary](/usc/16/410r–5.md?p=c-1) of the entire costs of the [acquisition](/usc/16/620e.md?p=1) of such property interest, including administrative costs. The [Secretary](/usc/16/410r–5.md?p=c-1) may accept, and expend, for purposes of such [acquisition](/usc/16/620e.md?p=1), amounts from any such [person](/usc/16/450rr–1.md?p=b) before acquiring a property interest to be transferred to such [person](/usc/16/450rr–1.md?p=b) under this section. - (2) If no payment is made by a permit holder under [paragraph (1)](#d-1), within a reasonable time, the [Secretary](/usc/16/410r–5.md?p=c-1) shall offer such rights-of-way to the original [owner](/usc/16/429b–3.md?p=4) for reacquisition at the original price paid by the [Secretary](/usc/16/410r–5.md?p=c-1). If such original [owner](/usc/16/429b–3.md?p=4) refuses to reacquire such property after a reasonable period, the [Secretary](/usc/16/410r–5.md?p=c-1) shall dispose of such property in accordance with applicable provisions of law governing disposal of property of the United States. - (e) **Federal law governing Federal lands—** This section shall not affect any Federal law governing [Federal lands](/usc/16/620e.md?p=2). # §824b. Disposition of property; consolidations; purchase of securities - (a) **Authorization—** - (1) No [public utility](/usc/16/824.md?p=e) shall, without first having secured an order of the [Commission](/usc/16/410cc–1.md?p=3) authorizing it to do so— - (A) sell, lease, or otherwise dispose of the whole of its facilities subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), or any part thereof of a value in excess of $10,000,000; - (B) merge or consolidate, directly or indirectly, its facilities subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), or any part thereof, with the facilities of any other [person](/usc/16/450rr–1.md?p=b), or any part thereof, that are subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) and have a value in excess of $10,000,000, by any means whatsoever; - (C) purchase, [acquire](/usc/16/620e.md?p=1), or take any [security](/usc/16/796.md?p=16) with a value in excess of $10,000,000 of any other [public utility](/usc/16/824.md?p=e); or - (D) purchase, lease, or otherwise [acquire](/usc/16/620e.md?p=1) an existing generation facility— - (i) that has a value in excess of $10,000,000; and - (ii) that is used for interstate wholesale sales and over which the [Commission](/usc/16/410cc–1.md?p=3) has jurisdiction for ratemaking purposes. - (2) No [holding company](#a-6) in a [holding company system](#a-6) that includes a [transmitting utility](/usc/16/796.md?p=23) or an [electric utility](/usc/16/796.md?p=22-A) shall purchase, [acquire](/usc/16/620e.md?p=1), or take any [security](/usc/16/796.md?p=16) with a value in excess of $10,000,000 of, or, by any means whatsoever, directly or indirectly, merge or consolidate with, a [transmitting utility](/usc/16/796.md?p=23), an [electric utility](/usc/16/796.md?p=22-A) company, or a [holding company](#a-6) in a [holding company system](#a-6) that includes a [transmitting utility](/usc/16/796.md?p=23), or an [electric utility](/usc/16/796.md?p=22-A) company, with a value in excess of $10,000,000 without first having secured an order of the [Commission](/usc/16/410cc–1.md?p=3) authorizing it to do so. - (3) Upon receipt of an application for such approval the [Commission](/usc/16/410cc–1.md?p=3) shall give reasonable notice in writing to the Governor and [State commission](/usc/16/796.md?p=21) of each of the [States](/usc/16/544.md?p=r) in which the physical property affected, or any part thereof, is situated, and to such other [persons](/usc/16/450rr–1.md?p=b) as it may deem advisable. - (4) After notice and opportunity for hearing, the [Commission](/usc/16/410cc–1.md?p=3) shall approve the proposed disposition, consolidation, [acquisition](/usc/16/620e.md?p=1), or change in control, if it finds that the proposed transaction will be consistent with the public interest, and will not result in cross-subsidization of a non-utility [associate company](#a-6) or the pledge or encumbrance of utility assets for the benefit of an [associate company](#a-6), unless the [Commission](/usc/16/410cc–1.md?p=3) determines that the cross-subsidization, pledge, or encumbrance will be consistent with the public interest. - (5) The [Commission](/usc/16/410cc–1.md?p=3) shall, by rule, adopt procedures for the expeditious consideration of applications for the approval of dispositions, consolidations, or [acquisitions](/usc/16/620e.md?p=1), under this section. Such rules shall identify classes of transactions, or specify criteria for transactions, that normally meet the standards established in [paragraph (4)](#a-4). The [Commission](/usc/16/410cc–1.md?p=3) shall provide expedited review for such transactions. The [Commission](/usc/16/410cc–1.md?p=3) shall grant or deny any other application for approval of a transaction not later than 180 days after the application is filed. If the [Commission](/usc/16/410cc–1.md?p=3) does not act within 180 days, such application shall be deemed granted unless the [Commission](/usc/16/410cc–1.md?p=3) finds, based on good cause, that further consideration is required to determine whether the proposed transaction meets the standards of [paragraph (4)](#a-4) and issues an order tolling the time for acting on the application for not more than 180 days, at the end of which additional period the [Commission](/usc/16/410cc–1.md?p=3) shall grant or deny the application. - (6) For purposes of this subsection, the terms “associate company”, “holding company”, and “holding company system” have the meaning given those terms in the [Public Utility](/usc/16/824.md?p=e) Holding Company Act of 2005 [[42 U.S.C. 16451](/usc/42/16451.md) et seq.]. - (7) - (A) Not later than 180 days after September 28, 2018, the [Commission](/usc/16/410cc–1.md?p=3) shall promulgate a rule requiring any [public utility](/usc/16/824.md?p=e) that is seeking to merge or consolidate, directly or indirectly, its facilities subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), or any part thereof, with those of any other [person](/usc/16/450rr–1.md?p=b), to notify the [Commission](/usc/16/410cc–1.md?p=3) of such transaction not later than 30 days after the date on which the transaction is consummated if— - (i) the facilities, or any part thereof, to be acquired are of a value in excess of $1,000,000; and - (ii) such [public utility](/usc/16/824.md?p=e) is not required to secure an order of the [Commission](/usc/16/410cc–1.md?p=3) under [paragraph (1)(B)](#a-1-B). - (B) In establishing any notification requirement under [subparagraph (A)](#a-7-A), the [Commission](/usc/16/410cc–1.md?p=3) shall, to the maximum extent practicable, minimize the paperwork burden resulting from the collection of information. - (b) **Orders of Commission—** The [Commission](/usc/16/410cc–1.md?p=3) may grant any application for an order under this section in whole or in part and upon such terms and conditions as it finds necessary or appropriate to secure the maintenance of adequate service and the coordination in the public interest of facilities subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3). The [Commission](/usc/16/410cc–1.md?p=3) may from time to time for good cause shown make such orders supplemental to any order made under this section as it may find necessary or appropriate. # §824c. Issuance of securities; assumption of liabilities - (a) **Authorization by Commission—** No [public utility](/usc/16/824.md?p=e) shall issue any [security](/usc/16/796.md?p=16), or assume any obligation or liability as guarantor, indorser, surety, or otherwise in respect of any [security](/usc/16/796.md?p=16) of another [person](/usc/16/450rr–1.md?p=b), unless and until, and then only to the extent that, upon application by the [public utility](/usc/16/824.md?p=e), the [Commission](/usc/16/410cc–1.md?p=3) by order authorizes such issue or assumption of liability. The [Commission](/usc/16/410cc–1.md?p=3) shall make such order only if it finds that such issue or assumption (a) is for some lawful object, within the corporate purposes of the applicant and compatible with the public interest, which is necessary or appropriate for or consistent with the proper performance by the applicant of service as a [public utility](/usc/16/824.md?p=e) and which will not impair its ability to perform that service, and (b) is reasonably necessary or appropriate for such purposes. The provisions of this section shall be effective six months after August 26, 1935. - (b) **Application approval or modification; supplemental orders—** The [Commission](/usc/16/410cc–1.md?p=3), after opportunity for hearing, may grant any application under this section in whole or in part, and with such modifications and upon such terms and conditions as it may find necessary or appropriate, and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental orders in the premises as it may find necessary or appropriate, and may by any such supplemental order modify the provisions of any previous order as to the particular purposes, [uses](/usc/16/410hhh–1.md?p=10), and extent to which, or the conditions under which, any [security](/usc/16/796.md?p=16) so theretofore authorized or the proceeds thereof may be applied, subject always to the requirements of [subsection (a)](#a) of this section. - (c) **Compliance with order of Commission—** No [public utility](/usc/16/824.md?p=e) shall, without the consent of the [Commission](/usc/16/410cc–1.md?p=3), apply any [security](/usc/16/796.md?p=16) or any proceeds thereof to any purpose not specified in the [Commission](/usc/16/410cc–1.md?p=3)’s order, or supplemental order, or to any purpose in excess of the amount allowed for such purpose in such order, or otherwise in contravention of such order. - (d) **Authorization of capitalization not to exceed amount paid—** The [Commission](/usc/16/410cc–1.md?p=3) shall not authorize the capitalization of the right to be a corporation or of any franchise, permit, or contract for consolidation, merger, or lease in excess of the amount (exclusive of any tax or annual charge) actually paid as the consideration for such right, franchise, permit, or contract. - (e) **Notes or drafts maturing less than one year after issuance—** [Subsection (a)](#a) shall not apply to the issue or renewal of, or assumption of liability on, a note or draft maturing not more than one year after the date of such issue, renewal, or assumption of liability, and aggregating (together with all other then outstanding notes and drafts of a maturity of one year or less on which such [public utility](/usc/16/824.md?p=e) is primarily or secondarily liable) not more than 5 per centum of the par value of the other [securities](/usc/16/796.md?p=16) of the [public utility](/usc/16/824.md?p=e) then outstanding. In the case of [securities](/usc/16/796.md?p=16) having no par value, the par value for the purpose of this subsection shall be the [fair market value](/usc/16/459b–1.md?p=e) as of the date of issue. Within ten days after any such issue, renewal, or assumption of liability, the [public utility](/usc/16/824.md?p=e) shall file with the [Commission](/usc/16/410cc–1.md?p=3) a certificate of notification, in such form as may be prescribed by the [Commission](/usc/16/410cc–1.md?p=3), setting forth such matters as the [Commission](/usc/16/410cc–1.md?p=3) shall by regulation require. - (f) **Public utility securities regulated by State not affected—** The provisions of this section shall not extend to a [public utility](/usc/16/824.md?p=e) organized and operating in a [State](/usc/16/6456.md?p=2) under the laws of which its [security](/usc/16/796.md?p=16) issues are regulated by a [State commission](/usc/16/796.md?p=21). - (g) **Guarantee or obligation on part of United States—** Nothing in this section shall be construed to imply any guarantee or obligation on the part of the United States in respect of any [securities](/usc/16/796.md?p=16) to which the provisions of this section relate. - (h) **Filing duplicate reports with the Securities and Exchange Commission—** Any [public utility](/usc/16/824.md?p=e) whose [security](/usc/16/796.md?p=16) issues are approved by the [Commission](/usc/16/410cc–1.md?p=3) under this section may file with the [Securities](/usc/16/796.md?p=16) and Exchange [Commission](/usc/16/410cc–1.md?p=3) duplicate copies of reports filed with the Federal Power [Commission](/usc/16/410cc–1.md?p=3) in lieu of the reports, information, and documents required under sections [77g](/usc/15/77g.md), [78l](/usc/15/78l.md), and [78m](/usc/15/78m.md) of title 15. # §824d. Rates and charges; schedules; suspension of new rates; automatic adjustment clauses - (a) **Just and reasonable rates—** All rates and charges made, demanded, or received by any [public utility](/usc/16/824.md?p=e) for or in connection with the transmission or sale of electric energy subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), and all rules and regulations affecting or pertaining to such rates or charges shall be just and reasonable, and any such rate or charge that is not just and reasonable is hereby declared to be unlawful. - (b) **Preference or advantage unlawful—** No [public utility](/usc/16/824.md?p=e) shall, with respect to any transmission or sale subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), (1) make or grant any undue preference or advantage to any [person](/usc/16/450rr–1.md?p=b) or subject any [person](/usc/16/450rr–1.md?p=b) to any undue prejudice or disadvantage, or (2) maintain any unreasonable difference in rates, charges, service, facilities, or in any other respect, either as between localities or as between classes of service. - (c) **Schedules—** Under such rules and regulations as the [Commission](/usc/16/410cc–1.md?p=3) may prescribe, every [public utility](/usc/16/824.md?p=e) shall file with the [Commission](/usc/16/410cc–1.md?p=3), within such time and in such form as the [Commission](/usc/16/410cc–1.md?p=3) may designate, and shall keep open in convenient form and place for public inspection schedules showing all rates and charges for any transmission or sale subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), and the classifications, practices, and regulations affecting such rates and charges, together with all contracts which in any manner affect or relate to such rates, charges, classifications, and services. - (d) **Notice required for rate changes—** Unless the [Commission](/usc/16/410cc–1.md?p=3) otherwise orders, no change shall be made by any [public utility](/usc/16/824.md?p=e) in any such rate, charge, classification, or service, or in any rule, regulation, or contract relating thereto, except after sixty days’ notice to the [Commission](/usc/16/410cc–1.md?p=3) and to the public. Such notice shall be given by filing with the [Commission](/usc/16/410cc–1.md?p=3) and keeping open for public inspection new schedules stating plainly the change or changes to be made in the schedule or schedules then in force and the time when the change or changes will go into effect. The [Commission](/usc/16/410cc–1.md?p=3), for good cause shown, may allow changes to take effect without requiring the sixty days’ notice herein provided for by an order specifying the changes so to be made and the time when they shall take effect and the manner in which they shall be filed and published. - (e) **Suspension of new rates; hearings; five-month period—** Whenever any such new schedule is filed the [Commission](/usc/16/410cc–1.md?p=3) shall have authority, either upon complaint or upon its own initiative without complaint, at once, and, if it so orders, without answer or formal pleading by the [public utility](/usc/16/824.md?p=e), but upon reasonable notice, to enter upon a hearing concerning the lawfulness of such rate, charge, classification, or service; and, pending such hearing and the decision thereon, the [Commission](/usc/16/410cc–1.md?p=3), upon filing with such schedules and delivering to the [public utility](/usc/16/824.md?p=e) affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of such rate, charge, classification, or service, but not for a longer period than five months beyond the time when it would otherwise go into effect; and after full hearings, either completed before or after the rate, charge, classification, or service goes into effect, the [Commission](/usc/16/410cc–1.md?p=3) may make such orders with reference thereto as would be proper in a proceeding initiated after it had become effective. If the proceeding has not been concluded and an order made at the expiration of such five months, the proposed change of rate, charge, classification, or service shall go into effect at the end of such period, but in case of a proposed increased rate or charge, the [Commission](/usc/16/410cc–1.md?p=3) may by order require the interested [public utility](/usc/16/824.md?p=e) or [public utilities](/usc/16/824.md?p=e) to keep accurate account in detail of all amounts received by reason of such increase, specifying by whom and in whose behalf such amounts are paid, and upon completion of the hearing and decision may by further order require such [public utility](/usc/16/824.md?p=e) or [public utilities](/usc/16/824.md?p=e) to refund, with interest, to the [persons](/usc/16/450rr–1.md?p=b) in whose behalf such amounts were paid, such portion of such increased rates or charges as by its decision shall be found not justified. At any hearing involving a rate or charge sought to be increased, the burden of proof to show that the increased rate or charge is just and reasonable shall be upon the [public utility](/usc/16/824.md?p=e), and the [Commission](/usc/16/410cc–1.md?p=3) shall give to the hearing and decision of such questions preference over other questions pending before it and decide the same as speedily as possible. - (f) **Review of automatic adjustment clauses and public utility practices; action by Commission; “automatic adjustment clause” defined—** - (1) Not later than 2 years after November 9, 1978, and not less often than every 4 years thereafter, the [Commission](/usc/16/410cc–1.md?p=3) shall make a thorough review of [automatic adjustment clauses](#f-4) in [public utility](/usc/16/824.md?p=e) rate schedules to examine— - (A) whether or not each such clause effectively provides incentives for efficient use of [resources](/usc/16/410hhh–1.md?p=8) (including economical purchase and use of fuel and electric energy), and - (B) whether any such clause reflects any costs other than costs which are— - (i) subject to periodic fluctuations and - (ii) not susceptible to precise determinations in rate cases prior to the time such costs are incurred. Such review may take place in individual rate proceedings or in generic or other separate proceedings applicable to one or more utilities. - (2) Not less frequently than every 2 years, in rate proceedings or in generic or other separate proceedings, the [Commission](/usc/16/410cc–1.md?p=3) shall review, with respect to each [public utility](/usc/16/824.md?p=e), practices under any [automatic adjustment clauses](#f-4) of such utility to insure efficient use of [resources](/usc/16/410hhh–1.md?p=8) (including economical purchase and use of fuel and electric energy) under such clauses. - (3) The [Commission](/usc/16/410cc–1.md?p=3) may, on its own motion or upon complaint, after an opportunity for an evidentiary hearing, order a [public utility](/usc/16/824.md?p=e) to— - (A) modify the terms and provisions of any [automatic adjustment clause](#f-4), or - (B) cease any practice in connection with the clause, if such clause or practice does not result in the economical purchase and use of fuel, electric energy, or other items, the cost of which is included in any rate schedule under an [automatic adjustment clause](#f-4). - (4) As used in this subsection, the term “automatic adjustment clause” means a provision of a rate schedule which provides for increases or decreases (or both), without prior hearing, in rates reflecting increases or decreases (or both) in costs incurred by an [electric utility](/usc/16/796.md?p=22-A). Such term does not include any rate which takes effect subject to refund and subject to a later determination of the appropriate amount of such rate. - (g) **Inaction of Commissioners—** - (1) **In general—** With respect to a change described in [subsection (d)](#d), if the [Commission](/usc/16/410cc–1.md?p=3) permits the 60-day period established therein to expire without issuing an order accepting or denying the change because the [Commissioners](/usc/16/3601.md?p=3) are divided two against two as to the lawfulness of the change, as a result of vacancy, incapacity, or recusal on the [Commission](/usc/16/410cc–1.md?p=3), or if the [Commission](/usc/16/410cc–1.md?p=3) lacks a quorum— - (A) the failure to issue an order accepting or denying the change by the [Commission](/usc/16/410cc–1.md?p=3) shall be considered to be an order issued by the [Commission](/usc/16/410cc–1.md?p=3) accepting the change for purposes of [section 825l(a)](/usc/16/825l.md?p=a) of this title; and - (B) each [Commissioner](/usc/16/3601.md?p=3) shall add to the record of the [Commission](/usc/16/410cc–1.md?p=3) a written statement explaining the views of the [Commissioner](/usc/16/3601.md?p=3) with respect to the change. - (2) **Appeal—** If, pursuant to this subsection, a [person](/usc/16/450rr–1.md?p=b) seeks a rehearing under [section 825l(a)](/usc/16/825l.md?p=a) of this title, and the [Commission](/usc/16/410cc–1.md?p=3) fails to act on the merits of the rehearing request by the date that is 30 days after the date of the rehearing request because the [Commissioners](/usc/16/3601.md?p=3) are divided two against two, as a result of vacancy, incapacity, or recusal on the [Commission](/usc/16/410cc–1.md?p=3), or if the [Commission](/usc/16/410cc–1.md?p=3) lacks a quorum, such [person](/usc/16/450rr–1.md?p=b) may appeal under [section 825l(b)](/usc/16/825l.md?p=b) of this title. # §824e. Power of Commission to fix rates and charges; determination of cost of production or transmission - (a) **Unjust or preferential rates, etc.; statement of reasons for changes; hearing; specification of issues—** Whenever the [Commission](/usc/16/410cc–1.md?p=3), after a hearing held upon its own motion or upon complaint, shall find that any rate, charge, or classification, demanded, observed, charged, or collected by any [public utility](/usc/16/824.md?p=e) for any transmission or sale subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), or that any rule, regulation, practice, or contract affecting such rate, charge, or classification is unjust, unreasonable, unduly discriminatory or preferential, the [Commission](/usc/16/410cc–1.md?p=3) shall determine the just and reasonable rate, charge, classification, rule, regulation, practice, or contract to be thereafter observed and in force, and shall fix the same by order. Any complaint or motion of the [Commission](/usc/16/410cc–1.md?p=3) to initiate a proceeding under this section shall [state](/usc/16/6456.md?p=2) the change or changes to be made in the rate, charge, classification, rule, regulation, practice, or contract then in force, and the reasons for any proposed change or changes therein. If, after review of any motion or complaint and answer, the [Commission](/usc/16/410cc–1.md?p=3) shall decide to hold a hearing, it shall fix by order the time and place of such hearing and shall specify the issues to be adjudicated. - (b) **Refund effective date; preferential proceedings; statement of reasons for delay; burden of proof; scope of refund order; refund orders in cases of dilatory behavior; interest—** Whenever the [Commission](/usc/16/410cc–1.md?p=3) [institutes](/usc/16/6703.md?p=4) a proceeding under this section, the [Commission](/usc/16/410cc–1.md?p=3) shall establish a refund effective date. In the case of a proceeding instituted on complaint, the refund effective date shall not be earlier than the date of the filing of such complaint nor later than 5 months after the filing of such complaint. In the case of a proceeding instituted by the [Commission](/usc/16/410cc–1.md?p=3) on its own motion, the refund effective date shall not be earlier than the date of the publication by the [Commission](/usc/16/410cc–1.md?p=3) of notice of its intention to initiate such proceeding nor later than 5 months after the publication date. Upon institution of a proceeding under this section, the [Commission](/usc/16/410cc–1.md?p=3) shall give to the decision of such proceeding the same preference as provided under [section 824d of this title](/usc/16/824d.md) and otherwise act as speedily as possible. If no final decision is rendered by the conclusion of the 180-day period commencing upon initiation of a proceeding pursuant to this section, the [Commission](/usc/16/410cc–1.md?p=3) shall [state](/usc/16/6456.md?p=2) the reasons why it has failed to do so and shall [state](/usc/16/6456.md?p=2) its best estimate as to when it reasonably expects to make such decision. In any proceeding under this section, the burden of proof to show that any rate, charge, classification, rule, regulation, practice, or contract is unjust, unreasonable, unduly discriminatory, or preferential shall be upon the [Commission](/usc/16/410cc–1.md?p=3) or the complainant. At the conclusion of any proceeding under this section, the [Commission](/usc/16/410cc–1.md?p=3) may order refunds of any amounts paid, for the period subsequent to the refund effective date through a date fifteen months after such refund effective date, in excess of those which would have been paid under the just and reasonable rate, charge, classification, rule, regulation, practice, or contract which the [Commission](/usc/16/410cc–1.md?p=3) orders to be thereafter observed and in force: Provided, That if the proceeding is not concluded within fifteen months after the refund effective date and if the [Commission](/usc/16/410cc–1.md?p=3) determines at the conclusion of the proceeding that the proceeding was not resolved within the fifteen-month period primarily because of dilatory behavior by the [public utility](/usc/16/824.md?p=e), the [Commission](/usc/16/410cc–1.md?p=3) may order refunds of any or all amounts paid for the period subsequent to the refund effective date and prior to the conclusion of the proceeding. The refunds shall be made, with interest, to those [persons](/usc/16/450rr–1.md?p=b) who have paid those rates or charges which are the subject of the proceeding. - (c) **Refund considerations; shifting costs; reduction in revenues; “electric utility companies” and “registered holding company” defined—** Notwithstanding [subsection (b)](#b), in a proceeding commenced under this section involving two or more electric utility companies of a registered holding company, refunds which might otherwise be payable under [subsection (b)](#b) shall not be ordered to the extent that such refunds would result from any portion of a [Commission](/usc/16/410cc–1.md?p=3) order that (1) requires a decrease in [system](/usc/16/668ee.md?p=14) production or transmission costs to be paid by one or more of such electric companies; and (2) is based upon a determination that the amount of such decrease should be paid through an increase in the costs to be paid by other electric utility companies of such registered holding company: Provided, That refunds, in whole or in part, may be ordered by the [Commission](/usc/16/410cc–1.md?p=3) if it determines that the registered holding company would not experience any reduction in revenues which results from an inability of an [electric utility](/usc/16/796.md?p=22-A) company of the holding company to recover such increase in costs for the period between the refund effective date and the effective date of the [Commission](/usc/16/410cc–1.md?p=3)’s order. For purposes of this subsection, the terms “electric utility companies” and “registered holding company” shall have the same meanings as provided in the [Public Utility](/usc/16/824.md?p=e) Holding Company Act of 1935, as amended.[^1] - (d) **Investigation of costs—** The [Commission](/usc/16/410cc–1.md?p=3) upon its own motion, or upon the request of any [State commission](/usc/16/796.md?p=21) whenever it can do so without prejudice to the efficient and proper conduct of its affairs, may investigate and determine the cost of the production or transmission of electric energy by means of facilities under the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) in cases where the [Commission](/usc/16/410cc–1.md?p=3) has no authority to establish a rate governing the sale of such energy. - (e) **Short-term sales—** - (1) In this subsection: - (A) The term “short-term sale” means an agreement for the [sale of electric energy at wholesale](/usc/16/824.md?p=d) in interstate commerce that is for a period of 31 days or less (excluding monthly contracts subject to automatic renewal). - (B) The term “applicable Commission rule” means a [Commission](/usc/16/410cc–1.md?p=3) rule applicable to sales at wholesale by [public utilities](/usc/16/824.md?p=e) that the [Commission](/usc/16/410cc–1.md?p=3) determines after notice and comment should also be applicable to entities subject to this subsection. - (2) If an entity described in [section 824(f) of this title](/usc/16/824.md?p=f) voluntarily makes a [short-term sale](#e-1-A) of electric energy through an organized market in which the rates for the sale are established by [Commission](/usc/16/410cc–1.md?p=3)-approved tariff (rather than by contract) and the sale violates the terms of the tariff or [applicable Commission rules](#e-1-B) in effect at the time of the sale, the entity shall be subject to the refund authority of the [Commission](/usc/16/410cc–1.md?p=3) under this section with respect to the [violation](/usc/16/620e.md?p=11). - (3) This section shall not apply to— - (A) any entity that sells in total (including affiliates of the entity) less than 8,000,000 megawatt hours of electricity per year; or - (B) an electric cooperative. - (4) - (A) The [Commission](/usc/16/410cc–1.md?p=3) shall have refund authority under [paragraph (2)](#e-2) with respect to a voluntary short term sale of electric energy by the Bonneville Power Administration only if the sale is at an unjust and unreasonable rate. - (B) The [Commission](/usc/16/410cc–1.md?p=3) may order a refund under [subparagraph (A)](#e-4-A) only for [short-term sales](#e-1-A) made by the Bonneville Power Administration at rates that are higher than the highest just and reasonable rate charged by any other entity for a [short-term sale](#e-1-A) of electric energy in the same geographic market for the same, or most nearly comparable, period as the sale by the Bonneville Power Administration. - (C) In the case of any Federal power marketing agency or the Tennessee Valley Authority, the [Commission](/usc/16/410cc–1.md?p=3) shall not assert or exercise any regulatory authority or power under [paragraph (2)](#e-2) other than the ordering of refunds to achieve a just and reasonable rate. # §824f. Ordering furnishing of adequate service Whenever the [Commission](/usc/16/410cc–1.md?p=3), upon complaint of a [State commission](/usc/16/796.md?p=21), after notice to each [State commission](/usc/16/796.md?p=21) and [public utility](/usc/16/824.md?p=e) affected and after opportunity for hearing, shall find that any interstate service of any [public utility](/usc/16/824.md?p=e) is inadequate or insufficient, the [Commission](/usc/16/410cc–1.md?p=3) shall determine the proper, adequate, or sufficient service to be furnished, and shall fix the same by its order, rule, or regulation: Provided, That the [Commission](/usc/16/410cc–1.md?p=3) shall have no authority to compel the enlargement of generating facilities for such purposes, nor to compel the [public utility](/usc/16/824.md?p=e) to sell or exchange energy when to do so would impair its ability to render adequate service to its customers. # §824g. Ascertainment of cost of property and depreciation - (a) **Investigation of property costs—** The [Commission](/usc/16/410cc–1.md?p=3) may investigate and ascertain the actual legitimate cost of the property of every [public utility](/usc/16/824.md?p=e), the depreciation therein, and, when found necessary for rate-making purposes, other facts which bear on the determination of such cost or depreciation, and the fair value of such property. - (b) **Request for inventory and cost statements—** Every [public utility](/usc/16/824.md?p=e) upon request shall file with the [Commission](/usc/16/410cc–1.md?p=3) an inventory of all or any part of its property and a statement of the original cost thereof, and shall keep the [Commission](/usc/16/410cc–1.md?p=3) informed regarding the cost of all [additions](/usc/16/410r–5.md?p=c-2), betterments, extensions, and new construction. # §824h. References to State boards by Commission - (a) **Composition of boards; force and effect of proceedings—** The [Commission](/usc/16/410cc–1.md?p=3) may refer any matter arising in the administration of this subchapter to a [board](/usc/16/1447a.md?p=1) to be composed of a member or members, as determined by the [Commission](/usc/16/410cc–1.md?p=3), from the [State](/usc/16/6456.md?p=2) or each of the [States](/usc/16/544.md?p=r) affected or to be affected by such matter. Any such [board](/usc/16/1447a.md?p=1) shall be vested with the same power and be subject to the same duties and liabilities as in the case of a member of the [Commission](/usc/16/410cc–1.md?p=3) when designated by the [Commission](/usc/16/410cc–1.md?p=3) to hold any hearings. The action of such [board](/usc/16/1447a.md?p=1) shall have such force and effect and its proceedings shall be conducted in such manner as the [Commission](/usc/16/410cc–1.md?p=3) shall by regulations prescribe. The [board](/usc/16/1447a.md?p=1) shall be appointed by the [Commission](/usc/16/410cc–1.md?p=3) from [persons](/usc/16/450rr–1.md?p=b) nominated by the [State commission](/usc/16/796.md?p=21) of each [State](/usc/16/6456.md?p=2) affected or by the Governor of such [State](/usc/16/6456.md?p=2) if there is no [State commission](/usc/16/796.md?p=21). Each [State](/usc/16/6456.md?p=2) affected shall be entitled to the same number of [representatives](/usc/16/5609.md?p=13) on the [board](/usc/16/1447a.md?p=1) unless the nominating power of such [State](/usc/16/6456.md?p=2) waives such right. The [Commission](/usc/16/410cc–1.md?p=3) shall have discretion to reject the nominee from any [State](/usc/16/6456.md?p=2), but shall thereupon invite a new nomination from that [State](/usc/16/6456.md?p=2). The members of a [board](/usc/16/1447a.md?p=1) shall receive such allowances for expenses as the [Commission](/usc/16/410cc–1.md?p=3) shall provide. The [Commission](/usc/16/410cc–1.md?p=3) may, when in its discretion sufficient reason exists therefor, revoke any reference to such a [board](/usc/16/1447a.md?p=1). - (b) **Cooperation with State commissions—** The [Commission](/usc/16/410cc–1.md?p=3) may confer with any [State commission](/usc/16/796.md?p=21) regarding the relationship between rate structures, costs, accounts, charges, practices, classifications, and regulations of [public utilities](/usc/16/824.md?p=e) subject to the jurisdiction of such [State commission](/usc/16/796.md?p=21) and of the [Commission](/usc/16/410cc–1.md?p=3); and the [Commission](/usc/16/410cc–1.md?p=3) is authorized, under such rules and regulations as it shall prescribe, to hold joint hearings with any [State commission](/usc/16/796.md?p=21) in connection with any matter with respect to which the [Commission](/usc/16/410cc–1.md?p=3) is authorized to act. The [Commission](/usc/16/410cc–1.md?p=3) is authorized in the administration of this chapter to avail itself of such cooperation, services, records, and facilities as may be afforded by any [State commission](/usc/16/796.md?p=21). - (c) **Availability of information and reports to State commissions; Commission experts—** The [Commission](/usc/16/410cc–1.md?p=3) shall make available to the several [State commissions](/usc/16/796.md?p=21) such information and reports as may be of assistance in [State](/usc/16/6456.md?p=2) regulation of [public utilities](/usc/16/824.md?p=e). Whenever the [Commission](/usc/16/410cc–1.md?p=3) can do so without prejudice to the efficient and proper conduct of its affairs, it may upon request from a [State](/usc/16/6456.md?p=2) make available to such [State](/usc/16/6456.md?p=2) as witnesses any of its trained rate, valuation, or other experts, subject to reimbursement to the [Commission](/usc/16/410cc–1.md?p=3) by such [State](/usc/16/6456.md?p=2) of the compensation and traveling expenses of such witnesses. All sums collected hereunder shall be credited to the appropriation from which the amounts were expended in carrying out the provisions of this subsection. # §824i. Interconnection authority - (a) **Powers of Commission; application by State regulatory authority—** - (1) Upon application of any [electric utility](/usc/16/796.md?p=22-A), Federal power marketing agency, geothermal power producer (including a producer which is not an [electric utility](/usc/16/796.md?p=22-A)), qualifying cogenerator, or qualifying small power producer, the [Commission](/usc/16/410cc–1.md?p=3) may issue an order requiring— - (A) the physical connection of any cogeneration facility, any small power production facility, or the transmission [facilities](#e-1) of any [electric utility](/usc/16/796.md?p=22-A), with the [facilities of such applicant](#e-2), - (B) such action as may be necessary to make effective any physical connection described in [subparagraph (A)](#a-1-A), which physical connection is ineffective for any reason, such as inadequate size, poor maintenance, or physical unreliability, - (C) such sale or exchange of electric energy or other coordination, as may be necessary to carry out the purposes of any order under subparagraph [(A)](#a-1-A) or [(B)](#a-1-B), or - (D) such increase in transmission capacity as may be necessary to carry out the purposes of any order under subparagraph [(A)](#a-1-A) or [(B)](#a-1-B). - (2) Any [State](/usc/16/6456.md?p=2) regulatory authority may apply to the [Commission](/usc/16/410cc–1.md?p=3) for an order for any action referred to in subparagraph [(A)](#a-1-A), [(B)](#a-1-B), [(C)](#a-1-C), or [(D)](#a-1-D) of paragraph (1). No such order may be issued by the [Commission](/usc/16/410cc–1.md?p=3) with respect to a Federal power marketing agency upon application of a [State](/usc/16/6456.md?p=2) regulatory authority. - (b) **Notice, hearing and determination by Commission—** Upon receipt of an application under [subsection (a)](#a), the [Commission](/usc/16/410cc–1.md?p=3) shall— - (1) issue notice to each affected [State](/usc/16/6456.md?p=2) regulatory authority, each affected [electric utility](/usc/16/796.md?p=22-A), each affected Federal power marketing agency, each affected [owner](/usc/16/429b–3.md?p=4) or operator of a cogeneration facility or of a small power production facility, and to the public.[^1] - (2) afford an opportunity for an evidentiary hearing, and - (3) make a determination with respect to the matters referred to in [subsection (c)](#c). - (c) **Necessary findings—** No order may be issued by the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (a)](#a) unless the [Commission](/usc/16/410cc–1.md?p=3) determines that such order— - (1) is in the public interest, - (2) would— - (A) encourage overall [conservation](/usc/16/6456.md?p=2) of energy or capital, - (B) optimize the efficiency of use of [facilities](#e-1) and [resources](/usc/16/410hhh–1.md?p=8), or - (C) improve the reliability of any [electric utility](/usc/16/796.md?p=22-A) [system](/usc/16/668ee.md?p=14) or Federal power marketing agency to which the order applies, and - (3) meets the requirements of [section 824k of this title](/usc/16/824k.md). - (d) **Motion of Commission—** The [Commission](/usc/16/410cc–1.md?p=3) may, on its own motion, after compliance with the requirements of paragraphs [(1)](#b-1) and [(2)](#b-2) of subsection (b), issue an order requiring any action described in [subsection (a)(1)](#a-1) if the [Commission](/usc/16/410cc–1.md?p=3) determines that such order meets the requirements of [subsection (c)](#c). No such order may be issued upon the [Commission](/usc/16/410cc–1.md?p=3)’s own motion with respect to a Federal power marketing agency. - (e) **Definitions—** - (1) As used in this section, the term “facilities” means only facilities used for the generation or transmission of electric energy. - (2) With respect to an order issued pursuant to an application of a qualifying cogenerator or qualifying small power producer under [subsection (a)(1)](#a-1), the term “facilities of such applicant” means the qualifying cogeneration [facilities](#e-1) or qualifying small power production [facilities](#e-1) of the applicant, as specified in the application. With respect to an order issued pursuant to an application under [subsection (a)(2)](#a-2), the term “facilities of such applicant” means the qualifying cogeneration [facilities](#e-1), qualifying small power production [facilities](#e-1), or the transmission [facilities](#e-1) of an [electric utility](/usc/16/796.md?p=22-A), as specified in the application. With respect to an order issued by the [Commission](/usc/16/410cc–1.md?p=3) on its own motion under [subsection (d)](#d), such term means the qualifying cogeneration [facilities](#e-1), qualifying small power production [facilities](#e-1), or the transmission [facilities](#e-1) of an [electric utility](/usc/16/796.md?p=22-A), as specified in the proposed order. # §824j. Wheeling authority - (a) **Transmission service by any electric utility; notice, hearing and findings by Commission—** Any [electric utility](/usc/16/796.md?p=22-A), Federal power marketing agency, or any other [person](/usc/16/450rr–1.md?p=b) generating electric energy for sale for resale, may apply to the [Commission](/usc/16/410cc–1.md?p=3) for an order under this subsection requiring a [transmitting utility](/usc/16/796.md?p=23) to provide transmission services (including any enlargement of transmission capacity necessary to provide such services) to the applicant. Upon receipt of such application, after public notice and notice to each affected [State](/usc/16/6456.md?p=2) regulatory authority, each affected [electric utility](/usc/16/796.md?p=22-A), and each affected Federal power marketing agency, and after affording an opportunity for an evidentiary hearing, the [Commission](/usc/16/410cc–1.md?p=3) may issue such order if it finds that such order meets the requirements of [section 824k of this title](/usc/16/824k.md), and would otherwise be in the public interest. No order may be issued under this subsection unless the applicant has made a request for transmission services to the [transmitting utility](/usc/16/796.md?p=23) that would be the subject of such order at least 60 days prior to its filing of an application for such order. - (b) **Reliability of electric service—** No order may be issued under this section or [section 824i of this title](/usc/16/824i.md) if, after giving consideration to consistently applied regional or national reliability standards, guidelines, or criteria, the [Commission](/usc/16/410cc–1.md?p=3) finds that such order would unreasonably impair the continued reliability of electric [systems](/usc/16/668ee.md?p=14) affected by the order. - (c) **Replacement of electric energy—** No order may be issued under subsection [(a)](#a) or [(b)](#b) which requires the [transmitting utility](/usc/16/796.md?p=23) subject to the order to transmit, during any period, an amount of electric energy which replaces any amount of electric energy— - (1) required to be provided to such applicant pursuant to a contract during such period, or - (2) currently provided to the applicant by the utility subject to the order pursuant to a rate schedule on file during such period with the [Commission](/usc/16/410cc–1.md?p=3): Provided, That nothing in this subparagraph shall prevent an application for an order hereunder to be filed prior to termination or modification of an existing rate schedule: Provided, That such order shall not become effective until termination of such rate schedule or the modification becomes effective. - (d) **Termination or modification of order; notice, hearing and findings of Commission; contents of order; inclusion in order of terms and conditions agreed upon by parties—** - (1) Any [transmitting utility](/usc/16/796.md?p=23) ordered under subsection [(a)](#a) or [(b)](#b) to provide transmission services may apply to the [Commission](/usc/16/410cc–1.md?p=3) for an order permitting such [transmitting utility](/usc/16/796.md?p=23) to cease providing all, or any portion of, such services. After public notice, notice to each affected [State](/usc/16/6456.md?p=2) regulatory authority, each affected Federal power marketing agency, each affected [transmitting utility](/usc/16/796.md?p=23), and each affected [electric utility](/usc/16/796.md?p=22-A), and after an opportunity for an evidentiary hearing, the [Commission](/usc/16/410cc–1.md?p=3) shall issue an order terminating or modifying the order issued under subsection [(a)](#a) or [(b)](#b), if the [transmitting utility](/usc/16/796.md?p=23) providing such transmission services has demonstrated, and the [Commission](/usc/16/410cc–1.md?p=3) has found, that— - (A) due to changed circumstances, the requirements applicable, under this section and [section 824k of this title](/usc/16/824k.md), to the issuance of an order under subsection [(a)](#a) or [(b)](#b) are no longer met, or[^1] - (B) any transmission capacity of the utility providing transmission services under such order which was, at the time such order was issued, in excess of the capacity necessary to serve its own customers is no longer in excess of the capacity necessary for such purposes, or - (C) the ordered transmission services require enlargement of transmission capacity and the [transmitting utility](/usc/16/796.md?p=23) subject to the order has failed, after making a good faith effort, to obtain the necessary approvals or property rights under applicable Federal, [State](/usc/16/6456.md?p=2), and local laws. No order shall be issued under this subsection pursuant to a finding under [subparagraph (A)](#d-1-A) unless the [Commission](/usc/16/410cc–1.md?p=3) finds that such order is in the public interest. - (2) Any order issued under this subsection terminating or modifying an order issued under subsection [(a)](#a) or [(b)](#b) shall— - (A) provide for any appropriate compensation, and - (B) provide the affected [electric utilities](/usc/16/796.md?p=22-A) adequate opportunity and time to— - (i) make suitable alternative arrangements for any transmission services terminated or modified, and - (ii) insure that the interests of ratepayers of such utilities are adequately protected. - (3) No order may be issued under this subsection terminating or modifying any order issued under subsection [(a)](#a) or [(b)](#b) if the order under subsection [(a)](#a) or [(b)](#b) includes terms and conditions agreed upon by the parties which— - (A) fix a period during which transmission services are to be provided under the order under subsection [(a)](#a) or [(b)](#b), or - (B) otherwise provide procedures or methods for terminating or modifying such order (including, if appropriate, the return of the transmission capacity when necessary to take into account an increase, after the issuance of such order, in the needs of the [transmitting utility](/usc/16/796.md?p=23) subject to such order for transmission capacity). - (e) **“Facilities” defined—** As used in this section, the term “facilities” means only facilities used for the generation or transmission of electric energy. # §824j–1. Open access by unregulated transmitting utilities - (a) **Definition of unregulated transmitting utility—** In this section, the term “unregulated transmitting utility” means an entity that— - (1) owns or operates facilities used for the transmission of electric energy in interstate commerce; and - (2) is an entity described in [section 824(f) of this title](/usc/16/824.md?p=f). - (b) **Transmission operation services—** Subject to [section 824k(h) of this title](/usc/16/824k.md?p=h), the [Commission](/usc/16/410cc–1.md?p=3) may, by rule or order, require an [unregulated transmitting utility](#a) to provide transmission services— - (1) at rates that are comparable to those that the [unregulated transmitting utility](#a) charges itself; and - (2) on terms and conditions (not relating to rates) that are comparable to those under which the [unregulated transmitting utility](#a) provides transmission services to itself and that are not unduly discriminatory or preferential. - (c) **Exemption—** The [Commission](/usc/16/410cc–1.md?p=3) shall exempt from any rule or order under this section any [unregulated transmitting utility](#a) that— - (1) sells not more than 4,000,000 megawatt hours of electricity per year; - (2) does not own or operate any transmission facilities that are necessary for operating an interconnected transmission [system](/usc/16/668ee.md?p=14) (or any portion of the [system](/usc/16/668ee.md?p=14)); or - (3) meets other criteria the [Commission](/usc/16/410cc–1.md?p=3) determines to be in the public interest. - (d) **Local distribution facilities—** The requirements of [subsection (b)](#b) shall not apply to facilities used in local distribution. - (e) **Exemption termination—** If the [Commission](/usc/16/410cc–1.md?p=3), after an evidentiary hearing held on a complaint and after giving consideration to reliability standards established under [section 824o](/usc/16/824o.md) of this title, finds on the basis of a preponderance of the evidence that any exemption granted pursuant to [subsection (c)](#c) unreasonably impairs the continued reliability of an interconnected transmission [system](/usc/16/668ee.md?p=14), the [Commission](/usc/16/410cc–1.md?p=3) shall revoke the exemption granted to the [transmitting utility](/usc/16/796.md?p=23). - (f) **Application to unregulated transmitting utilities—** The rate changing procedures applicable to [public utilities](/usc/16/824.md?p=e) under subsections (c) and (d) of [section 824d of this title](/usc/16/824d.md) are applicable to [unregulated transmitting utilities](#a) for purposes of this section. - (g) **Remand—** In exercising authority under [subsection (b)(1)](#b-1), the [Commission](/usc/16/410cc–1.md?p=3) may remand transmission rates to an [unregulated transmitting utility](#a) for review and revision if necessary to meet the requirements of [subsection (b)](#b). - (h) **Other requests—** The provision of transmission services under [subsection (b)](#b) does not preclude a request for transmission services under [section 824j of this title](/usc/16/824j.md). - (i) **Limitation—** The [Commission](/usc/16/410cc–1.md?p=3) may not require a [State](/usc/16/6456.md?p=2) or [municipality](/usc/16/2708.md?p=a-7) to take action under this section that would violate a private activity bond rule for purposes of [section 141 of title 26](/usc/26/141.md). - (j) **Transfer of control of transmitting facilities—** Nothing in this section authorizes the [Commission](/usc/16/410cc–1.md?p=3) to require an [unregulated transmitting utility](#a) to transfer control or operational control of its transmitting facilities to a Transmission Organization that is designated to provide nondiscriminatory transmission access. # §824k. Orders requiring interconnection or wheeling - (a) **Rates, charges, terms, and conditions for wholesale transmission services—** An order under [section 824j of this title](/usc/16/824j.md) shall require the [transmitting utility](/usc/16/796.md?p=23) subject to the order to provide wholesale transmission services at rates, charges, terms, and conditions which permit the recovery by such utility of all the costs incurred in connection with the transmission services and necessary associated services, including, but not limited to, an appropriate share, if any, of legitimate, verifiable and economic costs, including taking into account any benefits to the transmission [system](/usc/16/668ee.md?p=14) of providing the transmission service, and the costs of any enlargement of transmission facilities. Such rates, charges, terms, and conditions shall promote the economically efficient transmission and generation of electricity and shall be just and reasonable, and not unduly discriminatory or preferential. Rates, charges, terms, and conditions for transmission services provided pursuant to an order under [section 824j of this title](/usc/16/824j.md) shall ensure that, to the extent practicable, costs incurred in providing the wholesale transmission services, and properly allocable to the provision of such services, are recovered from the applicant for such order and not from a [transmitting utility](/usc/16/796.md?p=23)’s existing wholesale, retail, and transmission customers. - (b) **Repealed. Pub. L. 102–486, title VII, § 722(1), Oct. 24, 1992, 106 Stat. 2916—** - (c) **Issuance of proposed order; agreement by parties to terms and conditions of order; approval by Commission; inclusion in final order; failure to agree—** - (1) Before issuing an order under [section 824i of this title](/usc/16/824i.md) or subsection (a) or (b) of [section 824j of this title](/usc/16/824j.md), the [Commission](/usc/16/410cc–1.md?p=3) shall issue a proposed order and set a reasonable time for parties to the proposed interconnection or transmission order to agree to terms and conditions under which such order is to be carried out, including the apportionment of costs between them and the compensation or reimbursement reasonably due to any of them. Such proposed order shall not be reviewable or enforceable in any court. The time set for such parties to agree to such terms and conditions may be shortened if the [Commission](/usc/16/410cc–1.md?p=3) determines that delay would jeopardize the attainment of the purposes of any proposed order. Any terms and conditions agreed to by the parties shall be subject to the approval of the [Commission](/usc/16/410cc–1.md?p=3). - (2) - (A) If the parties agree as provided in [paragraph (1)](#c-1) within the time set by the [Commission](/usc/16/410cc–1.md?p=3) and the [Commission](/usc/16/410cc–1.md?p=3) approves such agreement, the terms and conditions shall be included in the final order. In the case of an order under [section 824i of this title](/usc/16/824i.md), if the parties fail to agree within the time set by the [Commission](/usc/16/410cc–1.md?p=3) or if the [Commission](/usc/16/410cc–1.md?p=3) does not approve any such agreement, the [Commission](/usc/16/410cc–1.md?p=3) shall prescribe such terms and conditions and include such terms and conditions in the final order. - (B) In the case of any order applied for under [section 824j of this title](/usc/16/824j.md), if the parties fail to agree within the time set by the [Commission](/usc/16/410cc–1.md?p=3), the [Commission](/usc/16/410cc–1.md?p=3) shall prescribe such terms and conditions in the final order. - (d) **Statement of reasons for denial—** If the [Commission](/usc/16/410cc–1.md?p=3) does not issue any order applied for under section [824i](/usc/16/824i.md) or [824j](/usc/16/824j.md) of this title, the [Commission](/usc/16/410cc–1.md?p=3) shall, by order, deny such application and [state](/usc/16/6456.md?p=2) the reasons for such denial. - (e) **Savings provisions—** - (1) No provision of section [824i](/usc/16/824i.md), [824j](/usc/16/824j.md), [824m](/usc/16/824m.md) of this title, or this section shall be treated as requiring any [person](/usc/16/450rr–1.md?p=b) to utilize the authority of any such section in lieu of any other authority of law. Except as provided in section [824i](/usc/16/824i.md), [824j](/usc/16/824j.md), [824m](/usc/16/824m.md) of this title, or this section, such sections shall not be construed as limiting or impairing any authority of the [Commission](/usc/16/410cc–1.md?p=3) under any other provision of law. - (2) Sections [824i](/usc/16/824i.md), [824j](/usc/16/824j.md), [824l](/usc/16/824l.md), [824m](/usc/16/824m.md) of this title, and this section, shall not be construed to modify, impair, or supersede the antitrust laws. For purposes of this section, the term “antitrust laws” has the meaning given in [subsection (a)](#a) of the first sentence of [section 12 of title 15](/usc/15/12.md), except that such term includes [section 45 of title 15](/usc/15/45.md) to the extent that such section relates to unfair methods of competition. - (f) **Effective date of order; hearing; notice; review—** - (1) No order under section [824i](/usc/16/824i.md) or [824j](/usc/16/824j.md) of this title requiring the Tennessee Valley Authority (hereinafter in this subsection referred to as the “TVA”) to take any action shall take effect for 60 days following the date of issuance of the order. Within 60 days following the issuance by the [Commission](/usc/16/410cc–1.md?p=3) of any order under [section 824i](/usc/16/824i.md) or of [section 824j of this title](/usc/16/824j.md) requiring the TVA to enter into any contract for the sale or delivery of power, the [Commission](/usc/16/410cc–1.md?p=3) may on its own motion initiate, or upon petition of any aggrieved [person](/usc/16/450rr–1.md?p=b) shall initiate, an evidentiary hearing to determine whether or not such sale or delivery would result in [violation](/usc/16/620e.md?p=11) of the third sentence of section 15d(a) of the Tennessee Valley Authority Act of 1933 ([16 U.S.C. 831n–4](/usc/16/831n–4.md)), hereinafter in this subsection referred to as the TVA Act [[16 U.S.C. 831](/usc/16/831.md) et seq.]. - (2) Upon initiation of any evidentiary hearing under [paragraph (1)](#f-1), the [Commission](/usc/16/410cc–1.md?p=3) shall give notice thereof to any applicant who applied for and obtained the order from the [Commission](/usc/16/410cc–1.md?p=3), to any [electric utility](/usc/16/796.md?p=22-A) or other entity subject to such order, and to the public, and shall promptly make the determination referred to in [paragraph (1)](#f-1). Upon initiation of such hearing, the [Commission](/usc/16/410cc–1.md?p=3) shall stay the effectiveness of the order under section [824i](/usc/16/824i.md) or [824j](/usc/16/824j.md) of this title until whichever of the following dates is applicable— - (A) the date on which there is a final determination (including any judicial review thereof under [paragraph (3)](#f-3)) that no such [violation](/usc/16/620e.md?p=11) would result from such order, or - (B) the date on which a specific authorization of the Congress (within the meaning of the third sentence of section 15d(a) of the TVA Act [[16 U.S.C. 831n–4(a)](/usc/16/831n–4.md?p=a)]) takes effect. - (3) Any determination under [paragraph (1)](#f-1) shall be reviewable only in the appropriate court of the United States upon petition filed by any aggrieved [person](/usc/16/450rr–1.md?p=b) or [municipality](/usc/16/2708.md?p=a-7) within 60 days after such determination, and such court shall have jurisdiction to grant appropriate relief. Any applicant who applied for and obtained the order under section [824i](/usc/16/824i.md) or [824j](/usc/16/824j.md) of this title, and any [electric utility](/usc/16/796.md?p=22-A) or other entity subject to such order shall have the right to intervene in any such proceeding in such court. Except for review by such court (and any appeal or other review by an appellate court of the United States), no court shall have jurisdiction to consider any action brought by any [person](/usc/16/450rr–1.md?p=b) to enjoin the carrying out of any order of the [Commission](/usc/16/410cc–1.md?p=3) under [section 824i](/usc/16/824i.md) or [section 824j of this title](/usc/16/824j.md) requiring the TVA to take any action on the grounds that such action requires a specific authorization of the Congress pursuant to the third sentence of section 15d(a) of the TVA Act [[16 U.S.C. 831n–4(a)](/usc/16/831n–4.md?p=a)]. - (g) **Prohibition on orders inconsistent with retail marketing areas—** No order may be issued under this chapter which is inconsistent with any [State](/usc/16/6456.md?p=2) law which governs the retail marketing [areas](/usc/16/539m–1.md?p=1-A) of [electric utilities](/usc/16/796.md?p=22-A). - (h) **Prohibition on mandatory retail wheeling and sham wholesale transactions—** No order issued under this chapter shall be conditioned upon or require the transmission of electric energy: - (1) directly to an ultimate consumer, or - (2) to, or for the benefit of, an entity if such electric energy would be sold by such entity directly to an ultimate consumer, unless: - (A) such entity is a Federal power marketing agency; the Tennessee Valley Authority; a [State](/usc/16/6456.md?p=2) or any political [subdivision](/usc/16/539m–1.md?p=15) of a [State](/usc/16/6456.md?p=2) (or an agency, authority, or instrumentality of a [State](/usc/16/6456.md?p=2) or a political [subdivision](/usc/16/539m–1.md?p=15)); a corporation or association that has ever received a loan for the purposes of providing electric service from the [Administrator](/usc/16/450rr–1.md?p=a) of the Rural Electrification Administration under the Rural Electrification Act of 1936 [[7 U.S.C. 901](/usc/7/901.md) et seq.]; a [person](/usc/16/450rr–1.md?p=b) having an obligation arising under [State](/usc/16/6456.md?p=2) or local law (exclusive of an obligation arising solely from a contract entered into by such [person](/usc/16/450rr–1.md?p=b)) to provide electric service to the public; or any corporation or association which is wholly owned, directly or indirectly, by any one or more of the foregoing; and - (B) such entity was providing electric service to such ultimate consumer on October 24, 1992, or would utilize transmission or distribution facilities that it owns or controls to deliver all such electric energy to such electric consumer. Nothing in this subsection shall affect any authority of any [State](/usc/16/6456.md?p=2) or local government under [State](/usc/16/6456.md?p=2) law concerning the transmission of electric energy directly to an ultimate consumer. - (i) **Laws applicable to Federal Columbia River Transmission System—** - (1) The [Commission](/usc/16/410cc–1.md?p=3) shall have authority pursuant to [section 824i of this title](/usc/16/824i.md), [section 824j of this title](/usc/16/824j.md), this section, and [section 824l](/usc/16/824l.md) of this title to (A) order the [Administrator](/usc/16/450rr–1.md?p=a) of the Bonneville Power Administration to provide transmission service and (B) establish the terms and conditions of such service. In applying such sections to the Federal Columbia River Transmission [System](/usc/16/668ee.md?p=14), the [Commission](/usc/16/410cc–1.md?p=3) shall assure that— - (i) the provisions of otherwise applicable Federal laws shall continue in full force and effect and shall continue to be applicable to the [system](/usc/16/668ee.md?p=14); and - (ii) the rates for the transmission of electric power on the [system](/usc/16/668ee.md?p=14) shall be governed only by such otherwise applicable provisions of law and not by any provision of [section 824i of this title](/usc/16/824i.md), [section 824j of this title](/usc/16/824j.md), this section, or [section 824l](/usc/16/824l.md) of this title, except that no rate for the transmission of power on the [system](/usc/16/668ee.md?p=14) shall be unjust, unreasonable, or unduly discriminatory or preferential, as determined by the [Commission](/usc/16/410cc–1.md?p=3). - (2) Notwithstanding any other provision of this chapter with respect to the procedures for the determination of terms and conditions for transmission service— - (A) when the [Administrator](/usc/16/450rr–1.md?p=a) of the Bonneville Power Administration either (i) in response to a written request for specific transmission service terms and conditions does not offer the requested terms and conditions, or (ii) proposes to establish terms and conditions of general applicability for transmission service on the Federal Columbia River Transmission [System](/usc/16/668ee.md?p=14), then the [Administrator](/usc/16/450rr–1.md?p=a) may provide opportunity for a hearing and, in so doing, shall— - (I) give notice in the Federal Register and [state](/usc/16/6456.md?p=2) in such notice the written explanation of the reasons why the specific terms and conditions for transmission services are not being offered or are being proposed; - (II) adhere to the procedural requirements of paragraphs (1) through (3) of [section 839e(i) of this title](/usc/16/839e.md?p=i), except that the hearing officer shall, unless the hearing officer becomes unavailable to the agency, make a recommended decision to the [Administrator](/usc/16/450rr–1.md?p=a) that [states](/usc/16/544.md?p=r) the hearing officer’s findings and conclusions, and the reasons or basis thereof, on all material issues of fact, law, or discretion presented on the record; and - (III) make a determination, setting forth the reasons for reaching any findings and conclusions which may differ from those of the hearing officer, based on the hearing record, consideration of the hearing officer’s recommended decision, [section 824j of this title](/usc/16/824j.md) and this section, as amended by the Energy Policy Act of 1992, and the provisions of law as preserved in this section; and - (B) if application is made to the [Commission](/usc/16/410cc–1.md?p=3) under [section 824j of this title](/usc/16/824j.md) for transmission service under terms and conditions different than those offered by the [Administrator](/usc/16/450rr–1.md?p=a), or following the denial of a request for transmission service by the [Administrator](/usc/16/450rr–1.md?p=a), and such application is filed within 60 days of the [Administrator](/usc/16/450rr–1.md?p=a)’s final determination and in accordance with [Commission](/usc/16/410cc–1.md?p=3) procedures, the [Commission](/usc/16/410cc–1.md?p=3) shall— - (i) in the event the [Administrator](/usc/16/450rr–1.md?p=a) has conducted a hearing as herein provided for (I) accord parties to the [Administrator](/usc/16/450rr–1.md?p=a)’s hearing the opportunity to offer for the [Commission](/usc/16/410cc–1.md?p=3) record materials excluded by the [Administrator](/usc/16/450rr–1.md?p=a) from the hearing record, (II) accord such parties the opportunity to submit for the [Commission](/usc/16/410cc–1.md?p=3) record comments on appropriate terms and conditions, (III) afford those parties the opportunity for a hearing if and to the extent that the [Commission](/usc/16/410cc–1.md?p=3) finds the [Administrator](/usc/16/450rr–1.md?p=a)’s hearing record to be inadequate to support a decision by the [Commission](/usc/16/410cc–1.md?p=3), and (IV) establish terms and conditions for or deny transmission service based on the [Administrator](/usc/16/450rr–1.md?p=a)’s hearing record, the [Commission](/usc/16/410cc–1.md?p=3) record, [section 824j of this title](/usc/16/824j.md) and this section, as amended by the Energy Policy Act of 1992, and the provisions of law as preserved in this section, or - (ii) in the event the [Administrator](/usc/16/450rr–1.md?p=a) has not conducted a hearing as herein provided for, determine whether to issue an order for transmission service in accordance with [section 824j of this title](/usc/16/824j.md) and this section, including providing the opportunity for a hearing. - (3) Notwithstanding those provisions of [section 825l(b)](/usc/16/825l.md?p=b) of this title which designate the court in which review may be obtained, any party to a proceeding concerning transmission service sought to be furnished by the [Administrator](/usc/16/450rr–1.md?p=a) of the Bonneville Power Administration seeking review of an order issued by the [Commission](/usc/16/410cc–1.md?p=3) in such proceeding shall obtain a review of such order in the United States Court of Appeals for the Pacific Northwest, as that [region](/usc/16/1447a.md?p=6) is defined by [section 839a(14) of this title](/usc/16/839a.md?p=14). - (4) To the extent the [Administrator](/usc/16/450rr–1.md?p=a) of the Bonneville Power Administration cannot be required under [section 824j of this title](/usc/16/824j.md), as a result of the [Administrator](/usc/16/450rr–1.md?p=a)’s other statutory mandates, either to (A) provide transmission service to an applicant which the [Commission](/usc/16/410cc–1.md?p=3) would otherwise order, or (B) provide such service under rates, terms, and conditions which the [Commission](/usc/16/410cc–1.md?p=3) would otherwise require, the applicant shall not be required to provide similar transmission services to the [Administrator](/usc/16/450rr–1.md?p=a) or to provide such services under similar rates, terms, and conditions. - (5) The [Commission](/usc/16/410cc–1.md?p=3) shall not issue any order under [section 824i of this title](/usc/16/824i.md), [section 824j of this title](/usc/16/824j.md), this section, or [section 824l](/usc/16/824l.md) of this title requiring the [Administrator](/usc/16/450rr–1.md?p=a) of the Bonneville Power Administration to provide transmission service if such an order would impair the [Administrator](/usc/16/450rr–1.md?p=a)’s ability to provide such transmission service to the [Administrator](/usc/16/450rr–1.md?p=a)’s power and transmission customers in the Pacific Northwest, as that [region](/usc/16/1447a.md?p=6) is defined in [section 839a(14) of this title](/usc/16/839a.md?p=14), as is needed to assure adequate and reliable service to loads in that [region](/usc/16/1447a.md?p=6). - (j) **Equitability within territory restricted electric systems—** With respect to an [electric utility](/usc/16/796.md?p=22-A) which is prohibited by Federal law from being a source of power supply, either directly or through a distributor of its electric energy, outside an [area](/usc/16/539m–1.md?p=1-A) set forth in such law, no order issued under [section 824j of this title](/usc/16/824j.md) may require such [electric utility](/usc/16/796.md?p=22-A) (or a distributor of such [electric utility](/usc/16/796.md?p=22-A)) to provide transmission services to another entity if the electric energy to be transmitted will be consumed within the [area](/usc/16/539m–1.md?p=1-A) set forth in such Federal law, unless the order is in furtherance of a sale of electric energy to that [electric utility](/usc/16/796.md?p=22-A): Provided, however, That the foregoing provision shall not apply to any [area](/usc/16/539m–1.md?p=1-A) served at retail by an electric transmission [system](/usc/16/668ee.md?p=14) which was such a distributor on October 24, 1992, and which before October 1, 1991, gave its notice of termination under its power supply contract with such [electric utility](/usc/16/796.md?p=22-A). - (k) **ERCOT utilities—** - (1) **Rates—** Any order under [section 824j of this title](/usc/16/824j.md) requiring provision of transmission services in whole or in part within [ERCOT](#k-2-A) shall provide that any [ERCOT utility](#k-2-B) which is not a [public utility](/usc/16/824.md?p=e) and the transmission facilities of which are actually used for such transmission service is entitled to receive compensation based, insofar as practicable and consistent with [subsection (a)](#a), on the transmission ratemaking methodology used by the [Public Utility](/usc/16/824.md?p=e) [Commission](/usc/16/410cc–1.md?p=3) of Texas. - (2) **Definitions—** For purposes of this subsection— - (A) the term “ERCOT” means the Electric Reliability [Council](/usc/16/460mmm–1.md?p=2) of Texas; and - (B) the term “ERCOT utility” means a [transmitting utility](/usc/16/796.md?p=23) which is a member of [ERCOT](#k-2-A). # §824l. Information requirements - (a) **Requests for wholesale transmission services—** Whenever any [electric utility](/usc/16/796.md?p=22-A), Federal power marketing agency, or any other [person](/usc/16/450rr–1.md?p=b) generating electric energy for sale for resale makes a good faith request to a [transmitting utility](/usc/16/796.md?p=23) to provide wholesale transmission services and requests specific rates and charges, and other terms and conditions, unless the [transmitting utility](/usc/16/796.md?p=23) agrees to provide such services at rates, charges, terms and conditions acceptable to such [person](/usc/16/450rr–1.md?p=b), the [transmitting utility](/usc/16/796.md?p=23) shall, within 60 days of its receipt of the request, or other mutually agreed upon period, provide such [person](/usc/16/450rr–1.md?p=b) with a detailed written explanation, with specific reference to the facts and circumstances of the request, stating (1) the [transmitting utility](/usc/16/796.md?p=23)’s basis for the proposed rates, charges, terms, and conditions for such services, and (2) its analysis of any physical or other constraints affecting the provision of such services. - (b) **Transmission capacity and constraints—** Not later than 1 year after October 24, 1992, the [Commission](/usc/16/410cc–1.md?p=3) shall promulgate a rule requiring that information be submitted annually to the [Commission](/usc/16/410cc–1.md?p=3) by [transmitting utilities](/usc/16/796.md?p=23) which is adequate to inform potential transmission customers, [State](/usc/16/6456.md?p=2) regulatory authorities, and the public of potentially available transmission capacity and known constraints. # §824m. Sales by exempt wholesale generators No rate or charge received by an exempt wholesale generator for the sale of electric energy shall be lawful under [section 824d of this title](/usc/16/824d.md) if, after notice and opportunity for hearing, the [Commission](/usc/16/410cc–1.md?p=3) finds that such rate or charge results from the receipt of any undue preference or advantage from an [electric utility](/usc/16/796.md?p=22-A) which is an associate company or an affiliate of the exempt wholesale generator. For purposes of this section, the terms “associate company” and “affiliate” shall have the same meaning as provided in [section 16451 of title 42](/usc/42/16451.md).[^1] # [§824n. Repealed. Pub. L. 109–58, title XII, § 1232(e)(3), Aug. 8, 2005, 119 Stat. 957 — repealed] # §824o. Electric reliability - (a) **Definitions—** For purposes of this section: - (1) The term “bulk-power system” means— - (A) facilities and control [systems](/usc/16/668ee.md?p=14) necessary for operating an interconnected electric energy transmission network (or any portion thereof); and - (B) electric energy from generation facilities needed to maintain transmission [system](/usc/16/668ee.md?p=14) reliability. The term does not include facilities used in the local distribution of electric energy. - (2) The terms “Electric Reliability Organization” and “ERO” mean the organization certified by the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (c)](#c) the purpose of which is to establish and enforce [reliability standards](#a-3) for the [bulk-power system](#a-1), subject to [Commission](/usc/16/410cc–1.md?p=3) review. - (3) The term “reliability standard” means a requirement, approved by the [Commission](/usc/16/410cc–1.md?p=3) under this section, to provide for [reliable operation](#a-4) of the [bulk-power system](#a-1). The term includes requirements for the operation of existing [bulk-power system](#a-1) facilities, including cybersecurity protection, and the design of planned [additions](/usc/16/410r–5.md?p=c-2) or modifications to such facilities to the extent necessary to provide for [reliable operation](#a-4) of the [bulk-power system](#a-1), but the term does not include any requirement to enlarge such facilities or to construct new transmission capacity or generation capacity. - (4) The term “reliable operation” means operating the elements of the [bulk-power system](#a-1) within equipment and electric [system](/usc/16/668ee.md?p=14) thermal, voltage, and stability limits so that instability, uncontrolled separation, or cascading failures of such [system](/usc/16/668ee.md?p=14) will not occur as a result of a sudden disturbance, including a [cybersecurity incident](#a-8), or unanticipated failure of [system](/usc/16/668ee.md?p=14) elements. - (5) The term “Interconnection” means a geographic [area](/usc/16/539m–1.md?p=1-A) in which the operation of [bulk-power system](#a-1) components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the [system](/usc/16/668ee.md?p=14) to maintain [reliable operation](#a-4) of the facilities within their control. - (6) The term “transmission organization” means a Regional Transmission Organization, Independent [System](/usc/16/668ee.md?p=14) Operator, independent transmission provider, or other transmission organization finally approved by the [Commission](/usc/16/410cc–1.md?p=3) for the operation of transmission facilities. - (7) The term “regional entity” means an entity having enforcement authority pursuant to [subsection (e)(4)](#e-4). - (8) The term “cybersecurity incident” means a malicious act or suspicious event that disrupts, or was an attempt to disrupt, the operation of those programmable electronic devices and communication networks including hardware, software and data that are essential to the [reliable operation](#a-4) of the bulk power [system](/usc/16/668ee.md?p=14). - (b) **Jurisdiction and applicability—** - (1) The [Commission](/usc/16/410cc–1.md?p=3) shall have jurisdiction, within the United States, over the [ERO](#a-2) certified by the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (c)](#c), any [regional entities](#a-7), and all users, [owners](/usc/16/429b–3.md?p=4) and operators of the [bulk-power system](#a-1), including but not limited to the entities described in [section 824(f) of this title](/usc/16/824.md?p=f), for purposes of approving [reliability standards](#a-3) established under this section and enforcing compliance with this section. All users, [owners](/usc/16/429b–3.md?p=4) and operators of the [bulk-power system](#a-1) shall comply with [reliability standards](#a-3) that take effect under this section. - (2) The [Commission](/usc/16/410cc–1.md?p=3) shall issue a final rule to implement the requirements of this section not later than 180 days after August 8, 2005. - (c) **Certification—** Following the issuance of a [Commission](/usc/16/410cc–1.md?p=3) rule under [subsection (b)(2)](#b-2), any [person](/usc/16/450rr–1.md?p=b) may submit an application to the [Commission](/usc/16/410cc–1.md?p=3) for certification as the [Electric Reliability Organization](#a-2). The [Commission](/usc/16/410cc–1.md?p=3) may certify one such [ERO](#a-2) if the [Commission](/usc/16/410cc–1.md?p=3) determines that such [ERO](#a-2)— - (1) has the ability to develop and enforce, subject to [subsection (e)(2)](#e-2), [reliability standards](#a-3) that provide for an adequate level of reliability of the [bulk-power system](#a-1); and - (2) has established rules that— - (A) assure its independence of the users and [owners](/usc/16/429b–3.md?p=4) and operators of the [bulk-power system](#a-1), while assuring fair stakeholder representation in the selection of its directors and balanced decisionmaking in any [ERO](#a-2) [committee](/usc/16/941b.md?p=1) or subordinate organizational structure; - (B) allocate equitably reasonable dues, fees, and other charges among end users for all activities under this section; - (C) provide fair and impartial procedures for enforcement of [reliability standards](#a-3) through the imposition of penalties in accordance with [subsection (e)](#e) (including limitations on activities, functions, or operations, or other appropriate sanctions); - (D) provide for reasonable notice and opportunity for public comment, due process, openness, and balance of interests in developing [reliability standards](#a-3) and otherwise exercising its duties; and - (E) provide for taking, after certification, appropriate steps to gain recognition in Canada and Mexico. - (d) **Reliability standards—** - (1) The [Electric Reliability Organization](#a-2) shall file each [reliability standard](#a-3) or modification to a [reliability standard](#a-3) that it proposes to be made effective under this section with the [Commission](/usc/16/410cc–1.md?p=3). - (2) The [Commission](/usc/16/410cc–1.md?p=3) may approve, by rule or order, a proposed [reliability standard](#a-3) or modification to a [reliability standard](#a-3) if it determines that the standard is just, reasonable, not unduly discriminatory or preferential, and in the public interest. The [Commission](/usc/16/410cc–1.md?p=3) shall give due weight to the technical expertise of the [Electric Reliability Organization](#a-2) with respect to the content of a proposed standard or modification to a [reliability standard](#a-3) and to the technical expertise of a [regional entity](#a-7) organized on an [Interconnection](#a-5)-wide basis with respect to a [reliability standard](#a-3) to be applicable within that [Interconnection](#a-5), but shall not defer with respect to the effect of a standard on competition. A proposed standard or modification shall take effect upon approval by the [Commission](/usc/16/410cc–1.md?p=3). - (3) The [Electric Reliability Organization](#a-2) shall rebuttably presume that a [proposal](/usc/16/7302.md?p=3) from a [regional entity](#a-7) organized on an [Interconnection](#a-5)-wide basis for a [reliability standard](#a-3) or modification to a [reliability standard](#a-3) to be applicable on an [Interconnection](#a-5)-wide basis is just, reasonable, and not unduly discriminatory or preferential, and in the public interest. - (4) The [Commission](/usc/16/410cc–1.md?p=3) shall remand to the [Electric Reliability Organization](#a-2) for further consideration a proposed [reliability standard](#a-3) or a modification to a [reliability standard](#a-3) that the [Commission](/usc/16/410cc–1.md?p=3) disapproves in whole or in part. - (5) The [Commission](/usc/16/410cc–1.md?p=3), upon its own motion or upon complaint, may order the [Electric Reliability Organization](#a-2) to submit to the [Commission](/usc/16/410cc–1.md?p=3) a proposed [reliability standard](#a-3) or a modification to a [reliability standard](#a-3) that addresses a specific matter if the [Commission](/usc/16/410cc–1.md?p=3) considers such a new or modified [reliability standard](#a-3) appropriate to carry out this section. - (6) The final rule adopted under [subsection (b)(2)](#b-2) shall include fair processes for the identification and timely resolution of any conflict between a [reliability standard](#a-3) and any function, rule, order, tariff, rate schedule, or agreement accepted, approved, or ordered by the [Commission](/usc/16/410cc–1.md?p=3) applicable to a [transmission organization](#a-6). Such [transmission organization](#a-6) shall continue to comply with such function, rule, order, tariff, rate schedule or agreement accepted, approved, or ordered by the [Commission](/usc/16/410cc–1.md?p=3) until— - (A) the [Commission](/usc/16/410cc–1.md?p=3) finds a conflict exists between a [reliability standard](#a-3) and any such provision; - (B) the [Commission](/usc/16/410cc–1.md?p=3) orders a change to such provision pursuant to [section 824e of this title](/usc/16/824e.md); and - (C) the ordered change becomes effective under this subchapter. If the [Commission](/usc/16/410cc–1.md?p=3) determines that a [reliability standard](#a-3) needs to be changed as a result of such a conflict, it shall order the [ERO](#a-2) to develop and file with the [Commission](/usc/16/410cc–1.md?p=3) a modified [reliability standard](#a-3) under paragraph (4) or (5) of this subsection. - (e) **Enforcement—** - (1) The [ERO](#a-2) may impose, subject to [paragraph (2)](#e-2), a penalty on a user or [owner](/usc/16/429b–3.md?p=4) or operator of the [bulk-power system](#a-1) for a [violation](/usc/16/620e.md?p=11) of a [reliability standard](#a-3) approved by the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (d)](#d) if the [ERO](#a-2), after notice and an opportunity for a hearing— - (A) finds that the user or [owner](/usc/16/429b–3.md?p=4) or operator has violated a [reliability standard](#a-3) approved by the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (d)](#d); and - (B) files notice and the record of the proceeding with the [Commission](/usc/16/410cc–1.md?p=3). - (2) A penalty imposed under [paragraph (1)](#e-1) may take effect not earlier than the 31st day after the [ERO](#a-2) files with the [Commission](/usc/16/410cc–1.md?p=3) notice of the penalty and the record of proceedings. Such penalty shall be subject to review by the [Commission](/usc/16/410cc–1.md?p=3), on its own motion or upon application by the user, [owner](/usc/16/429b–3.md?p=4) or operator that is the subject of the penalty filed within 30 days after the date such notice is filed with the [Commission](/usc/16/410cc–1.md?p=3). Application to the [Commission](/usc/16/410cc–1.md?p=3) for review, or the initiation of review by the [Commission](/usc/16/410cc–1.md?p=3) on its own motion, shall not operate as a stay of such penalty unless the [Commission](/usc/16/410cc–1.md?p=3) otherwise orders upon its own motion or upon application by the user, [owner](/usc/16/429b–3.md?p=4) or operator that is the subject of such penalty. In any proceeding to review a penalty imposed under [paragraph (1)](#e-1), the [Commission](/usc/16/410cc–1.md?p=3), after notice and opportunity for hearing (which hearing may consist solely of the record before the [ERO](#a-2) and opportunity for the presentation of supporting reasons to affirm, modify, or set aside the penalty), shall by order affirm, set aside, reinstate, or modify the penalty, and, if appropriate, remand to the [ERO](#a-2) for further proceedings. The [Commission](/usc/16/410cc–1.md?p=3) shall implement expedited procedures for such hearings. - (3) On its own motion or upon complaint, the [Commission](/usc/16/410cc–1.md?p=3) may order compliance with a [reliability standard](#a-3) and may impose a penalty against a user or [owner](/usc/16/429b–3.md?p=4) or operator of the [bulk-power system](#a-1) if the [Commission](/usc/16/410cc–1.md?p=3) finds, after notice and opportunity for a hearing, that the user or [owner](/usc/16/429b–3.md?p=4) or operator of the [bulk-power system](#a-1) has engaged or is about to engage in any acts or practices that constitute or will constitute a [violation](/usc/16/620e.md?p=11) of a [reliability standard](#a-3). - (4) The [Commission](/usc/16/410cc–1.md?p=3) shall issue regulations authorizing the [ERO](#a-2) to enter into an agreement to delegate authority to a [regional entity](#a-7) for the purpose of proposing [reliability standards](#a-3) to the [ERO](#a-2) and enforcing [reliability standards](#a-3) under [paragraph (1)](#e-1) if— - (A) the [regional entity](#a-7) is governed by— - (i) an independent [board](/usc/16/1447a.md?p=1); - (ii) a balanced stakeholder [board](/usc/16/1447a.md?p=1); or - (iii) a combination independent and balanced stakeholder [board](/usc/16/1447a.md?p=1). - (B) the [regional entity](#a-7) otherwise satisfies the provisions of subsection [(c)(1)](#c-1) and [(2)](#c-2); and - (C) the agreement promotes effective and efficient administration of [bulk-power system](#a-1) reliability. The [Commission](/usc/16/410cc–1.md?p=3) may modify such delegation. The [ERO](#a-2) and the [Commission](/usc/16/410cc–1.md?p=3) shall rebuttably presume that a [proposal](/usc/16/7302.md?p=3) for delegation to a [regional entity](#a-7) organized on an [Interconnection](#a-5)-wide basis promotes effective and efficient administration of [bulk-power system](#a-1) reliability and should be approved. Such regulation may provide that the [Commission](/usc/16/410cc–1.md?p=3) may assign the [ERO](#a-2)’s authority to enforce [reliability standards](#a-3) under [paragraph (1)](#e-1) directly to a [regional entity](#a-7) consistent with the requirements of this paragraph. - (5) The [Commission](/usc/16/410cc–1.md?p=3) may take such action as is necessary or appropriate against the [ERO](#a-2) or a [regional entity](#a-7) to ensure compliance with a [reliability standard](#a-3) or any [Commission](/usc/16/410cc–1.md?p=3) order affecting the [ERO](#a-2) or a [regional entity](#a-7). - (6) Any penalty imposed under this section shall bear a reasonable relation to the seriousness of the [violation](/usc/16/620e.md?p=11) and shall take into consideration the efforts of such user, [owner](/usc/16/429b–3.md?p=4), or operator to remedy the [violation](/usc/16/620e.md?p=11) in a timely manner. - (f) **Changes in Electric Reliability Organization rules—** The [Electric Reliability Organization](#a-2) shall file with the [Commission](/usc/16/410cc–1.md?p=3) for approval any proposed rule or proposed rule change, accompanied by an explanation of its basis and purpose. The [Commission](/usc/16/410cc–1.md?p=3), upon its own motion or complaint, may propose a change to the rules of the [ERO](#a-2). A proposed rule or proposed rule change shall take effect upon a finding by the [Commission](/usc/16/410cc–1.md?p=3), after notice and opportunity for comment, that the change is just, reasonable, not unduly discriminatory or preferential, is in the public interest, and satisfies the requirements of [subsection (c)](#c). - (g) **Reliability reports—** The [ERO](#a-2) shall conduct periodic assessments of the reliability and adequacy of the [bulk-power system](#a-1) in North America. - (h) **Coordination with Canada and Mexico—** The President is urged to negotiate international agreements with the governments of Canada and Mexico to provide for effective compliance with [reliability standards](#a-3) and the effectiveness of the [ERO](#a-2) in the United States and Canada or Mexico. - (i) **Savings provisions—** - (1) The [ERO](#a-2) shall have authority to develop and enforce compliance with [reliability standards](#a-3) for only the [bulk-power system](#a-1). - (2) This section does not authorize the [ERO](#a-2) or the [Commission](/usc/16/410cc–1.md?p=3) to order the construction of additional generation or transmission capacity or to set and enforce compliance with standards for adequacy or safety of electric facilities or services. - (3) Nothing in this section shall be construed to preempt any authority of any [State](/usc/16/6456.md?p=2) to take action to ensure the safety, adequacy, and reliability of electric service within that [State](/usc/16/6456.md?p=2), as long as such action is not inconsistent with any [reliability standard](#a-3), except that the [State](/usc/16/6456.md?p=2) of New York may establish rules that result in greater reliability within that [State](/usc/16/6456.md?p=2), as long as such action does not result in lesser reliability outside the [State](/usc/16/6456.md?p=2) than that provided by the [reliability standards](#a-3). - (4) Within 90 days of the application of the [Electric Reliability Organization](#a-2) or other affected party, and after notice and opportunity for comment, the [Commission](/usc/16/410cc–1.md?p=3) shall issue a final order determining whether a [State](/usc/16/6456.md?p=2) action is inconsistent with a [reliability standard](#a-3), taking into consideration any recommendation of the [ERO](#a-2). - (5) The [Commission](/usc/16/410cc–1.md?p=3), after consultation with the [ERO](#a-2) and the [State](/usc/16/6456.md?p=2) taking action, may stay the effectiveness of any [State](/usc/16/6456.md?p=2) action, pending the [Commission](/usc/16/410cc–1.md?p=3)’s issuance of a final order. - (j) **Regional advisory bodies—** The [Commission](/usc/16/410cc–1.md?p=3) shall establish a regional advisory body on the petition of at least two-thirds of the [States](/usc/16/544.md?p=r) within a [region](/usc/16/1447a.md?p=6) that have more than one-half of their electric load served within the [region](/usc/16/1447a.md?p=6). A regional advisory body shall be composed of one member from each participating [State](/usc/16/6456.md?p=2) in the [region](/usc/16/1447a.md?p=6), appointed by the Governor of each [State](/usc/16/6456.md?p=2), and may include [representatives](/usc/16/5609.md?p=13) of agencies, [States](/usc/16/544.md?p=r), and provinces outside the United States. A regional advisory body may provide advice to the [Electric Reliability Organization](#a-2), a [regional entity](#a-7), or the [Commission](/usc/16/410cc–1.md?p=3) regarding the governance of an existing or proposed [regional entity](#a-7) within the same [region](/usc/16/1447a.md?p=6), whether a standard proposed to apply within the [region](/usc/16/1447a.md?p=6) is just, reasonable, not unduly discriminatory or preferential, and in the public interest, whether fees proposed to be assessed within the [region](/usc/16/1447a.md?p=6) are just, reasonable, not unduly discriminatory or preferential, and in the public interest and any other responsibilities requested by the [Commission](/usc/16/410cc–1.md?p=3). The [Commission](/usc/16/410cc–1.md?p=3) may give deference to the advice of any such regional advisory body if that body is organized on an [Interconnection](#a-5)-wide basis. - (k) **Alaska and Hawaii—** The provisions of this section do not apply to Alaska or Hawaii. # §824o–1. Critical electric infrastructure security - (a) **Definitions—** For purposes of this section: - (1) **Bulk-power system; Electric Reliability Organization; regional entity—** The terms “bulk-power system”, “Electric Reliability Organization”, and “regional entity” have the meanings given such terms in paragraphs [(1)](/usc/16/824o.md?p=a-1), [(2)](/usc/16/824o.md?p=a-2), and [(7)](/usc/16/824o.md?p=a-7) of section 824o(a) of this title, respectively. - (2) **Critical electric infrastructure—** The term “critical electric infrastructure” means a [system](/usc/16/668ee.md?p=14) or asset of the [bulk-power system](#a-1), whether physical or virtual, the incapacity or destruction of which would negatively affect national [security](/usc/16/796.md?p=16), economic [security](/usc/16/796.md?p=16), public health or safety, or any combination of such matters. - (3) **Critical electric infrastructure information—** The term “critical electric infrastructure information” means information related to [critical electric infrastructure](#a-2), or proposed critical electrical infrastructure, generated by or provided to the [Commission](/usc/16/410cc–1.md?p=3) or other Federal agency, other than classified national [security](/usc/16/796.md?p=16) information, that is designated as critical electric infrastructure information by the [Commission](/usc/16/410cc–1.md?p=3) or the [Secretary](#a-8) pursuant to [subsection (d)](#d). Such term includes information that qualifies as critical energy infrastructure information under the [Commission](/usc/16/410cc–1.md?p=3)’s regulations. - (4) **Defense critical electric infrastructure—** The term “defense critical electric infrastructure” means any electric infrastructure located in any of the 48 contiguous [States](/usc/16/544.md?p=r) or the District of Columbia that serves a facility designated by the [Secretary](#a-8) pursuant to [subsection (c)](#c), but is not owned or operated by the [owner](/usc/16/429b–3.md?p=4) or operator of such facility. - (5) **Electromagnetic pulse—** The term “electromagnetic pulse” means 1 or more pulses of electromagnetic energy emitted by a device capable of disabling or disrupting operation of, or destroying, electronic devices or communications networks, including hardware, software, and data, by means of such a pulse. - (6) **Geomagnetic storm—** The term “geomagnetic storm” means a temporary disturbance of the Earth’s magnetic field resulting from solar activity. - (7) **Grid security emergency—** The term “grid security emergency” means the occurrence or imminent danger of— - (A) - (i) a malicious act using electronic communication or an [electromagnetic pulse](#a-5), or a [geomagnetic storm](#a-6) event, that could disrupt the operation of those electronic devices or communications networks, including hardware, software, and data, that are essential to the reliability of [critical electric infrastructure](#a-2) or of [defense critical electric infrastructure](#a-4); and - (ii) disruption of the operation of such devices or networks, with significant adverse effects on the reliability of [critical electric infrastructure](#a-2) or of [defense critical electric infrastructure](#a-4), as a result of such act or event; or - (B) - (i) a direct physical attack on [critical electric infrastructure](#a-2) or on [defense critical electric infrastructure](#a-4); and - (ii) significant adverse effects on the reliability of [critical electric infrastructure](#a-2) or of [defense critical electric infrastructure](#a-4) as a result of such physical attack. - (8) **Secretary—** The term “Secretary” means the Secretary of Energy. - (b) **Authority to address grid security emergency—** - (1) **Authority—** Whenever the President issues and provides to the [Secretary](#a-8) a written directive or determination identifying a [grid security emergency](#a-7), the [Secretary](#a-8) may, with or without notice, hearing, or report, issue such orders for emergency measures as are necessary in the judgment of the [Secretary](#a-8) to protect or restore the reliability of [critical electric infrastructure](#a-2) or of [defense critical electric infrastructure](#a-4) during such emergency. As soon as practicable but not later than 180 days after December 4, 2015, the [Secretary](#a-8) shall, after notice and opportunity for comment, establish rules of procedure that ensure that such authority can be exercised expeditiously. - (2) **Notification of Congress—** Whenever the President issues and provides to the [Secretary](#a-8) a written directive or determination under [paragraph (1)](#b-1), the President shall promptly notify congressional [committees](/usc/16/941b.md?p=1) of relevant jurisdiction, including the [Committee](/usc/16/941b.md?p=1) on Energy and Commerce of the House of [Representatives](/usc/16/5609.md?p=13) and the [Committee](/usc/16/941b.md?p=1) on Energy and Natural [Resources](/usc/16/410hhh–1.md?p=8) of the Senate, of the contents of, and justification for, such directive or determination. - (3) **Consultation—** Before issuing an order for emergency measures under [paragraph (1)](#b-1), the [Secretary](#a-8) shall, to the extent practicable in light of the nature of the [grid security emergency](#a-7) and the urgency of the need for action, consult with appropriate governmental authorities in Canada and Mexico, entities described in [paragraph (4)](#b-4), the Electricity Sub-sector Coordinating [Council](/usc/16/460mmm–1.md?p=2), the [Commission](/usc/16/410cc–1.md?p=3), and other appropriate Federal agencies regarding implementation of such emergency measures. - (4) **Application—** An order for emergency measures under this subsection may apply to— - (A) the [Electric Reliability Organization](#a-1); - (B) a [regional entity](#a-1); or - (C) any [owner](/usc/16/429b–3.md?p=4), user, or operator of [critical electric infrastructure](#a-2) or of [defense critical electric infrastructure](#a-4) within the United States. - (5) **Expiration and reissuance—** - (A) **In general—** Except as provided in [subparagraph (B)](#b-5-B), an order for emergency measures issued under [paragraph (1)](#b-1) shall expire no later than 15 days after its issuance. - (B) **Extensions—** The [Secretary](#a-8) may reissue an order for emergency measures issued under [paragraph (1)](#b-1) for subsequent periods, not to exceed 15 days for each such period, provided that the President, for each such period, issues and provides to the [Secretary](#a-8) a written directive or determination that the [grid security emergency](#a-7) identified under [paragraph (1)](#b-1) continues to exist or that the emergency measure continues to be required. - (6) **Cost recovery—** - (A) **Critical electric infrastructure—** If the [Commission](/usc/16/410cc–1.md?p=3) determines that [owners](/usc/16/429b–3.md?p=4), operators, or users of [critical electric infrastructure](#a-2) have incurred substantial costs to comply with an order for emergency measures issued under this subsection and that such costs were prudently incurred and cannot reasonably be recovered through regulated rates or market prices for the electric energy or services sold by such [owners](/usc/16/429b–3.md?p=4), operators, or users, the [Commission](/usc/16/410cc–1.md?p=3) shall, consistent with the requirements of [section 824d of this title](/usc/16/824d.md), after notice and an opportunity for comment, establish a mechanism that permits such [owners](/usc/16/429b–3.md?p=4), operators, or users to recover such costs. - (B) **Defense critical electric infrastructure—** To the extent the [owner](/usc/16/429b–3.md?p=4) or operator of [defense critical electric infrastructure](#a-4) is required to take emergency measures pursuant to an order issued under this subsection, the [owners](/usc/16/429b–3.md?p=4) or operators of a critical defense facility or facilities designated by the [Secretary](#a-8) pursuant to [subsection (c)](#c) that rely upon such infrastructure shall bear the full incremental costs of the measures. - (7) **Temporary access to classified information—** The [Secretary](#a-8), and other appropriate Federal agencies, shall, to the extent practicable and consistent with their obligations to protect classified information, provide temporary access to classified information related to a [grid security emergency](#a-7) for which emergency measures are issued under [paragraph (1)](#b-1) to key personnel of any entity subject to such emergency measures to enable optimum communication between the entity and the [Secretary](#a-8) and other appropriate Federal agencies regarding the [grid security emergency](#a-7). - (c) **Designation of critical defense facilities—** Not later than 180 days after December 4, 2015, the [Secretary](#a-8), in consultation with other appropriate Federal agencies and appropriate [owners](/usc/16/429b–3.md?p=4), users, or operators of infrastructure that may be [defense critical electric infrastructure](#a-4), shall identify and designate facilities located in the 48 contiguous [States](/usc/16/544.md?p=r) and the District of Columbia that are— - (1) critical to the defense of the United States; and - (2) vulnerable to a disruption of the supply of electric energy provided to such facility by an external provider. The [Secretary](#a-8) may, in consultation with appropriate Federal agencies and appropriate [owners](/usc/16/429b–3.md?p=4), users, or operators of [defense critical electric infrastructure](#a-4), periodically revise the list of designated facilities as necessary. - (d) **Protection and sharing of critical electric infrastructure information—** - (1) **Protection of critical electric infrastructure information—** [Critical electric infrastructure information](#a-3)— - (A) shall be exempt from disclosure under [section 552(b)(3) of title 5](/usc/5/552.md?p=b-3); and - (B) shall not be made available by any Federal, [State](/usc/16/6456.md?p=2), political [subdivision](/usc/16/539m–1.md?p=15) or tribal authority pursuant to any Federal, [State](/usc/16/6456.md?p=2), political [subdivision](/usc/16/539m–1.md?p=15) or tribal law requiring public disclosure of information or records. - (2) **Designation and sharing of critical electric infrastructure information—** Not later than one year after December 4, 2015, the [Commission](/usc/16/410cc–1.md?p=3), after consultation with the [Secretary](#a-8), shall promulgate such regulations as necessary to— - (A) establish criteria and procedures to designate information as [critical electric infrastructure information](#a-3); - (B) prohibit the unauthorized disclosure of [critical electric infrastructure information](#a-3); - (C) ensure there are appropriate sanctions in place for [Commissioners](/usc/16/3601.md?p=3), officers, employees, or agents of the [Commission](/usc/16/410cc–1.md?p=3) or the Department of Energy who knowingly and willfully disclose [critical electric infrastructure information](#a-3) in a manner that is not authorized under this section; and - (D) taking into account standards of the [Electric Reliability Organization](#a-1), facilitate voluntary sharing of [critical electric infrastructure information](#a-3) with, between, and by— - (i) Federal, [State](/usc/16/6456.md?p=2), political [subdivision](/usc/16/539m–1.md?p=15), and tribal authorities; - (ii) the [Electric Reliability Organization](#a-1); - (iii) [regional entities](#a-1); - (iv) information sharing and analysis centers established pursuant to Presidential Decision Directive 63; - (v) [owners](/usc/16/429b–3.md?p=4), operators, and users of [critical electric infrastructure](#a-2) in the United States; and - (vi) other entities determined appropriate by the [Commission](/usc/16/410cc–1.md?p=3). - (3) **Authority to designate—** Information may be designated by the [Commission](/usc/16/410cc–1.md?p=3) or the [Secretary](#a-8) as [critical electric infrastructure information](#a-3) pursuant to the criteria and procedures established by the [Commission](/usc/16/410cc–1.md?p=3) under [paragraph (2)(A)](#d-2-A). - (4) **Considerations—** In exercising their respective authorities under this subsection, the [Commission](/usc/16/410cc–1.md?p=3) and the [Secretary](#a-8) shall take into consideration the role of [State commissions](/usc/16/796.md?p=21) in reviewing the prudence and cost of investments, determining the rates and terms of conditions for electric services, and ensuring the safety and reliability of the [bulk-power system](#a-1) and distribution facilities within their respective jurisdictions. - (5) **Protocols—** The [Commission](/usc/16/410cc–1.md?p=3) and the [Secretary](#a-8) shall, in consultation with Canadian and Mexican authorities, develop protocols for the voluntary sharing of [critical electric infrastructure information](#a-3) with Canadian and Mexican authorities and [owners](/usc/16/429b–3.md?p=4), operators, and users of the [bulk-power system](#a-1) outside the United States. - (6) **No required sharing of information—** Nothing in this section shall require a [person](/usc/16/450rr–1.md?p=b) or entity in possession of [critical electric infrastructure information](#a-3) to share such information with Federal, [State](/usc/16/6456.md?p=2), political [subdivision](/usc/16/539m–1.md?p=15), or tribal authorities, or any other [person](/usc/16/450rr–1.md?p=b) or entity. - (7) **Submission of information to Congress—** Nothing in this section shall permit or authorize the withholding of information from Congress, any [committee](/usc/16/941b.md?p=1) or subcommittee thereof, or the Comptroller General. - (8) **Disclosure of nonprotected information—** In implementing this section, the [Commission](/usc/16/410cc–1.md?p=3) and the [Secretary](#a-8) shall segregate [critical electric infrastructure information](#a-3) or information that reasonably could be expected to lead to the disclosure of the [critical electric infrastructure information](#a-3) within documents and electronic communications, wherever feasible, to facilitate disclosure of information that is not designated as [critical electric infrastructure information](#a-3). - (9) **Duration of designation—** Information may not be designated as [critical electric infrastructure information](#a-3) for longer than 5 years, unless specifically re-designated by the [Commission](/usc/16/410cc–1.md?p=3) or the [Secretary](#a-8), as appropriate. - (10) **Removal of designation—** The [Commission](/usc/16/410cc–1.md?p=3) or the [Secretary](#a-8), as appropriate, shall remove the designation of [critical electric infrastructure information](#a-3), in whole or in part, from a document or electronic communication if the [Commission](/usc/16/410cc–1.md?p=3) or the [Secretary](#a-8), as appropriate, determines that the unauthorized disclosure of such information could no longer be used to impair the [security](/usc/16/796.md?p=16) or reliability of the [bulk-power system](#a-1) or distribution facilities. - (11) **Judicial review of designations—** Notwithstanding [section 825l(b)](/usc/16/825l.md?p=b) of this title, with respect to a petition filed by a [person](/usc/16/450rr–1.md?p=b) to which an order under this section applies, any determination by the [Commission](/usc/16/410cc–1.md?p=3) or the [Secretary](#a-8) concerning the designation of [critical electric infrastructure information](#a-3) under this subsection shall be subject to review under [chapter 7](/usc/5/chptI-ch7.md) of title 5, except that such review shall be brought in the district court of the United States in the district in which the complainant resides, or has his principal place of business, or in the District of Columbia. In such a case the court shall examine in camera the contents of documents or electronic communications that are the subject of the determination under review to determine whether such documents or any part thereof were improperly designated or not designated as [critical electric infrastructure information](#a-3). - (e) **Security clearances—** The [Secretary](#a-8) shall facilitate and, to the extent practicable, expedite the [acquisition](/usc/16/620e.md?p=1) of adequate [security](/usc/16/796.md?p=16) clearances by key personnel of any entity subject to the requirements of this section, to enable optimum communication with Federal agencies regarding threats to the [security](/usc/16/796.md?p=16) of the [critical electric infrastructure](#a-2). The [Secretary](#a-8), the [Commission](/usc/16/410cc–1.md?p=3), and other appropriate Federal agencies shall, to the extent practicable and consistent with their obligations to protect classified and [critical electric infrastructure information](#a-3), share timely actionable information regarding grid [security](/usc/16/796.md?p=16) with appropriate key personnel of [owners](/usc/16/429b–3.md?p=4), operators, and users of the [critical electric infrastructure](#a-2). - (f) **Clarifications of liability—** - (1) **Compliance with or violation of this chapter—** Except as provided in [paragraph (4)](#f-4), to the extent any action or omission taken by an entity that is necessary to comply with an order for emergency measures issued under [subsection (b)(1)](#b-1), including any action or omission taken to voluntarily comply with such order, results in noncompliance with, or causes such entity not to comply with any rule, order, regulation, or provision of this chapter, including any reliability standard approved by the [Commission](/usc/16/410cc–1.md?p=3) pursuant to [section 824o](/usc/16/824o.md) of this title, such action or omission shall not be considered a [violation](/usc/16/620e.md?p=11) of such rule, order, regulation, or provision. - (2) **Relation to section 824a(c) of this title—** Except as provided in [paragraph (4)](#f-4), an action or omission taken by an [owner](/usc/16/429b–3.md?p=4), operator, or user of [critical electric infrastructure](#a-2) or of [defense critical electric infrastructure](#a-4) to comply with an order for emergency measures issued under [subsection (b)(1)](#b-1) shall be treated as an action or omission taken to comply with an order issued under [section 824a(c) of this title](/usc/16/824a.md?p=c) for purposes of such section. - (3) **Sharing or receipt of information—** No cause of action shall lie or be maintained in any Federal or [State](/usc/16/6456.md?p=2) court for the sharing or receipt of information under, and that is conducted in accordance with, [subsection (d)](#d). - (4) **Rule of construction—** Nothing in this subsection shall be construed to require dismissal of a cause of action against an entity that, in the course of complying with an order for emergency measures issued under [subsection (b)(1)](#b-1) by taking an action or omission for which they would be liable but for paragraph [(1)](#f-1) or [(2)](#f-2), takes such action or omission in a grossly negligent manner. # §824p. Siting of interstate electric transmission facilities - (a) **Designation of national interest electric transmission corridors—** - (1) Not later than 1 year after August 8, 2005, and every 3 years thereafter, the [Secretary](/usc/16/410r–5.md?p=c-1) of Energy (referred to in this section as the “[Secretary](/usc/16/410r–5.md?p=c-1)”), in consultation with affected [States](/usc/16/544.md?p=r) and [Indian Tribes](/usc/16/544.md?p=g), shall conduct a study of electric transmission capacity constraints and congestion. - (2) Not less frequently than once every 3 years, the [Secretary](/usc/16/410r–5.md?p=c-1), after considering alternatives and recommendations from interested parties (including an opportunity for comment from affected [States](/usc/16/544.md?p=r) and [Indian Tribes](/usc/16/544.md?p=g)), shall issue a report, based on the study under [paragraph (1)](#a-1) or other information relating to electric transmission capacity constraints and congestion, which may designate as a national interest electric transmission corridor any geographic [area](/usc/16/539m–1.md?p=1-A) that— - (i) [^1] is experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers; or - (ii) [^2] is expected to experience such energy transmission capacity constraints or congestion. - (3) Not less frequently than once every 3 years, the [Secretary](/usc/16/410r–5.md?p=c-1), in conducting the study under [paragraph (1)](#a-1) and issuing the report under [paragraph (2)](#a-2), shall consult with any appropriate [regional entity](/usc/16/824o–1.md?p=a-1) referred to in [section 824o](/usc/16/824o.md) of this title. - (4) In determining whether to designate a national interest electric transmission corridor under [paragraph (2)](#a-2), the [Secretary](/usc/16/410r–5.md?p=c-1) may consider whether— - (A) the economic vitality and development of the corridor, or the end markets served by the corridor, may be constrained by lack of adequate or reasonably priced electricity; - (B) - (i) economic growth in the corridor, or the end markets served by the corridor, may be jeopardized by reliance on limited sources of energy; and - (ii) a diversification of supply is warranted; - (C) the energy independence or energy [security](/usc/16/796.md?p=16) of the United States would be served by the designation; - (D) the designation would be in the interest of national energy policy; - (E) the designation would enhance national defense and homeland [security](/usc/16/796.md?p=16); - (F) the designation would enhance the ability of facilities that generate or transmit firm or intermittent energy to connect to the electric grid; - (G) the designation— - (i) maximizes existing rights-of-way; and - (ii) avoids and minimizes, to the maximum extent practicable, and offsets to the extent appropriate and practicable, sensitive environmental [areas](/usc/16/539m–1.md?p=1-A) and cultural heritage sites; and - (H) the designation would result in a reduction in the cost to purchase electric energy for consumers. - (b) **Construction permit—** Except as provided in [subsection (i)](#i), the [Commission](/usc/16/410cc–1.md?p=3) may, after notice and an opportunity for hearing, issue one or more permits for the construction or modification of electric transmission facilities in a national interest electric transmission corridor designated by the [Secretary](/usc/16/410r–5.md?p=c-1) under [subsection (a)](#a) if the [Commission](/usc/16/410cc–1.md?p=3) finds that— - (1) - (A) a [State](/usc/16/6456.md?p=2) in which the transmission facilities are to be constructed or modified does not have authority to— - (i) approve the siting of the facilities; or - (ii) consider the interstate benefits or interregional benefits expected to be achieved by the proposed construction or modification of transmission facilities in the [State](/usc/16/6456.md?p=2); - (B) the applicant for a permit is a [transmitting utility](/usc/16/796.md?p=23) under this chapter but does not qualify to apply for a permit or siting approval for the proposed [project](/usc/16/410r–5.md?p=c-4) in a [State](/usc/16/6456.md?p=2) because the applicant does not serve end-use customers in the [State](/usc/16/6456.md?p=2); or - (C) a [State commission](/usc/16/796.md?p=21) or other entity that has authority to approve the siting of the facilities— - (i) has not made a determination on an application seeking approval pursuant to applicable law by the date that is 1 year after the later of— - (I) the date on which the application was filed; and - (II) the date on which the relevant national interest electric transmission corridor was designated by the [Secretary](/usc/16/410r–5.md?p=c-1) under [subsection (a)](#a); - (ii) has conditioned its approval in such a manner that the proposed construction or modification will not significantly reduce transmission capacity constraints or congestion in interstate commerce or is not economically feasible; or - (iii) has denied an application seeking approval pursuant to applicable law; - (2) the facilities to be authorized by the permit will be used for the transmission of electric energy in interstate commerce; - (3) the proposed construction or modification is consistent with the public interest; - (4) the proposed construction or modification will significantly reduce transmission congestion in interstate commerce and protects or benefits consumers; - (5) the proposed construction or modification is consistent with sound national energy policy and will enhance energy independence; and - (6) the proposed modification will maximize, to the extent reasonable and economical, the transmission capabilities of existing towers or structures. - (c) **Permit applications—** - (1) Permit applications under [subsection (b)](#b) shall be made in writing to the [Commission](/usc/16/410cc–1.md?p=3). - (2) The [Commission](/usc/16/410cc–1.md?p=3) shall issue rules specifying— - (A) the form of the application; - (B) the information to be contained in the application; and - (C) the manner of service of notice of the permit application on interested [persons](/usc/16/450rr–1.md?p=b). - (d) **Comments—** In any proceeding before the [Commission](/usc/16/410cc–1.md?p=3) under [subsection (b)](#b), the [Commission](/usc/16/410cc–1.md?p=3) shall afford each [State](/usc/16/6456.md?p=2) in which a transmission facility covered by the permit is or will be located, each affected Federal agency and Indian tribe, private property [owners](/usc/16/429b–3.md?p=4), and other interested [persons](/usc/16/450rr–1.md?p=b), a reasonable opportunity to present their views and recommendations with respect to the need for and impact of a facility covered by the permit. - (e) **Rights-of-way—** - (1) In the case of a permit under [subsection (b)](#b) for electric transmission facilities to be located on property other than property owned by the United States or a [State](/usc/16/6456.md?p=2), if the permit holder cannot [acquire](/usc/16/620e.md?p=1) by contract, or is unable to agree with the [owner](/usc/16/429b–3.md?p=4) of the property to the compensation to be paid for, the necessary right-of-way to construct or modify, and operate and maintain, the transmission facilities and, in the determination of the [Commission](/usc/16/410cc–1.md?p=3), the permit holder has made good faith efforts to engage with landowners and other stakeholders early in the applicable permitting process, the permit holder may [acquire](/usc/16/620e.md?p=1) the right-of-way by the exercise of the right of eminent domain in the district court of the United States for the district in which the property concerned is located, or in the appropriate court of the [State](/usc/16/6456.md?p=2) in which the property is located. - (2) Any right-of-way acquired under [paragraph (1)](#e-1) shall be used exclusively for the construction or modification of electric transmission facilities within a reasonable period of time after the [acquisition](/usc/16/620e.md?p=1). - (3) The practice and procedure in any action or proceeding under this subsection in the district court of the United States shall conform as nearly as practicable to the practice and procedure in a similar action or proceeding in the courts of the [State](/usc/16/6456.md?p=2) in which the property is located. - (4) Nothing in this subsection shall be construed to authorize the use of eminent domain to [acquire](/usc/16/620e.md?p=1) a right-of-way for any purpose other than the construction, modification, operation, or maintenance of electric transmission facilities and related facilities. The right-of-way cannot be used for any other purpose, and the right-of-way shall terminate upon the termination of the use for which the right-of-way was acquired. - (f) **Compensation—** - (1) Any right-of-way acquired pursuant to [subsection (e)](#e) shall be considered a taking of private property for which just compensation is due. - (2) Just compensation shall be an amount equal to the [fair market value](/usc/16/459b–1.md?p=e) (including applicable severance damages) of the property taken on the date of the exercise of eminent domain authority. - (g) **State law—** Nothing in this section precludes any [person](/usc/16/450rr–1.md?p=b) from constructing or modifying any transmission facility in accordance with [State](/usc/16/6456.md?p=2) law. - (h) **Coordination of Federal authorizations for transmission facilities—** - (1) In this subsection: - (A) The term “Federal authorization” means any authorization required under Federal law in order to site a transmission facility. - (B) The term “[Federal authorization](#h-1-A)” includes such permits, special use authorizations, certifications, opinions, or other approvals as may be required under Federal law in order to site a transmission facility. - (2) The Department of Energy shall act as the lead agency for purposes of coordinating all applicable [Federal authorizations](#h-1-A) and related environmental reviews of the facility. - (3) To the maximum extent practicable under applicable Federal law, the [Secretary](/usc/16/410r–5.md?p=c-1) shall coordinate the [Federal authorization](#h-1-A) and review process under this subsection with any [Indian tribes](/usc/16/544.md?p=g), multistate entities, and [State](/usc/16/6456.md?p=2) agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions. - (4) - (A) As head of the lead agency, the [Secretary](/usc/16/410r–5.md?p=c-1), in consultation with agencies responsible for [Federal authorizations](#h-1-A) and, as appropriate, with [Indian tribes](/usc/16/544.md?p=g), multistate entities, and [State](/usc/16/6456.md?p=2) agencies that are willing to coordinate their own separate permitting and environmental reviews with the [Federal authorization](#h-1-A) and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and [Federal authorization](#h-1-A) decisions relating to, the proposed facility. - (B) The [Secretary](/usc/16/410r–5.md?p=c-1) shall ensure that, once an application has been submitted with such data as the [Secretary](/usc/16/410r–5.md?p=c-1) considers necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed— - (i) within 1 year; or - (ii) if a requirement of another provision of Federal law does not permit compliance with [clause (i)](#h-4-B-i), as soon thereafter as is practicable. - (C) The [Secretary](/usc/16/410r–5.md?p=c-1) shall provide an expeditious pre-application mechanism for prospective applicants to confer with the agencies involved to have each such agency determine and communicate to the prospective applicant not later than 60 days after the prospective applicant submits a request for such information concerning— - (i) the likelihood of approval for a potential facility; and - (ii) key issues of concern to the agencies and public. - (5) - (A) As lead agency head, the [Secretary](/usc/16/410r–5.md?p=c-1), in consultation with the affected agencies, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the proposed [project](/usc/16/410r–5.md?p=c-4) under Federal law. - (B) The [Secretary](/usc/16/410r–5.md?p=c-1) and the heads of other agencies shall streamline the review and permitting of transmission within corridors designated under [section 503](/usc/16/503.md) of the Federal Land Policy and Management Act[^3] ([43 U.S.C. 1763](/usc/43/1763.md)) by fully taking into account prior analyses and decisions relating to the corridors. - (C) The document shall include consideration by the relevant agencies of any applicable criteria or other matters as required under applicable law. - (6) - (A) If any agency has denied a [Federal authorization](#h-1-A) required for a transmission facility, or has failed to act by the deadline established by the [Secretary](/usc/16/410r–5.md?p=c-1) pursuant to this section for deciding whether to issue the authorization, the applicant or any [State](/usc/16/6456.md?p=2) in which the facility would be located may file an appeal with the President, who shall, in consultation with the affected agency, review the denial or failure to take action on the pending application. - (B) Based on the overall record and in consultation with the affected agency, the President may— - (i) issue the necessary authorization with any appropriate conditions; or - (ii) deny the application. - (C) The President shall issue a decision not later than 90 days after the date of the filing of the appeal. - (D) In making a decision under this paragraph, the President shall comply with applicable requirements of Federal law, including any requirements of— - (i) the [National Forest](/usc/16/5207.md?p=3) Management Act of 1976 ([16 U.S.C. 472a](/usc/16/472a.md) et seq.); - (ii) the Endangered Species Act of 1973 ([16 U.S.C. 1531](/usc/16/1531.md) et seq.); - (iii) the Federal Water Pollution Control Act ([33 U.S.C. 1251](/usc/33/1251.md) et seq.); - (iv) the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.); and - (v) the Federal Land Policy and Management Act of 1976 ([43 U.S.C. 1701](/usc/43/1701.md) et seq.). - (7) - (A) Not later than 18 months after August 8, 2005, the [Secretary](/usc/16/410r–5.md?p=c-1) shall issue any regulations necessary to implement this subsection. - (B) - (i) Not later than 1 year after August 8, 2005, the [Secretary](/usc/16/410r–5.md?p=c-1) and the heads of all Federal agencies with authority to issue [Federal authorizations](#h-1-A) shall enter into a memorandum of understanding to ensure the timely and coordinated review and permitting of electricity transmission facilities. - (ii) Interested [Indian tribes](/usc/16/544.md?p=g), multistate entities, and [State](/usc/16/6456.md?p=2) agencies may enter the memorandum of understanding. - (C) The head of each Federal agency with authority to issue a [Federal authorization](#h-1-A) shall designate a senior official responsible for, and dedicate sufficient other staff and [resources](/usc/16/410hhh–1.md?p=8) to ensure, full implementation of the regulations and memorandum required under this paragraph. - (8) - (A) Each Federal [land use](/usc/16/1453.md?p=10) authorization for an electricity transmission facility shall be issued— - (i) for a duration, as determined by the [Secretary](/usc/16/410r–5.md?p=c-1), commensurate with the anticipated use of the facility; and - (ii) with appropriate authority to manage the right-of-way for reliability and environmental protection. - (B) On the expiration of the authorization (including an authorization issued before August 8, 2005), the authorization shall be reviewed for renewal taking fully into account reliance on such electricity infrastructure, recognizing the importance of the authorization for public health, safety, and economic welfare and as a legitimate use of Federal land. - (9) In exercising the responsibilities under this section, the [Secretary](/usc/16/410r–5.md?p=c-1) shall consult regularly with— - (A) the Federal Energy Regulatory [Commission](/usc/16/410cc–1.md?p=3); - (B) [electric reliability organizations](/usc/16/824o–1.md?p=a-1) (including related [regional entities](/usc/16/824o–1.md?p=a-1)) approved by the [Commission](/usc/16/410cc–1.md?p=3); and - (C) Transmission Organizations approved by the [Commission](/usc/16/410cc–1.md?p=3). - (i) **Interstate compacts—** - (1) The consent of Congress is given for three or more contiguous [States](/usc/16/544.md?p=r) to enter into an interstate compact, subject to approval by Congress, establishing regional transmission siting agencies to— - (A) facilitate siting of future electric energy transmission facilities within those [States](/usc/16/544.md?p=r); and - (B) carry out the electric energy transmission siting responsibilities of those [States](/usc/16/544.md?p=r). - (2) The [Secretary](/usc/16/410r–5.md?p=c-1) shall provide technical assistance to regional transmission siting agencies established under this subsection. - (3) The regional transmission siting agencies shall have the authority to review, certify, and permit siting of transmission facilities, including facilities in national interest electric transmission corridors (other than facilities on property owned by the United States). - (4) The [Commission](/usc/16/410cc–1.md?p=3) shall have no authority to issue a permit for the construction or modification of an electric transmission facility within a [State](/usc/16/6456.md?p=2) that is a party to a compact, unless the [Secretary](/usc/16/410r–5.md?p=c-1) determines that the members of the compact are in disagreement after the later of— - (A) the date that is 1 year after the date on which the relevant application for the facility was filed; and - (B) the date that is 1 year after the date on which the relevant national interest electric transmission corridor was designated by the [Secretary](/usc/16/410r–5.md?p=c-1) under [subsection (a)](#a). - (j) **Relationship to other laws—** - (1) Except as specifically provided, nothing in this section affects any requirement of an environmental law of the United States, including the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.). - (2) [Subsection (h)(6)](#h-6) shall not apply to any [unit](/usc/16/430f–7.md?p=4) of the [National Park](/usc/16/410hhh–1.md?p=5) [System](/usc/16/668ee.md?p=14), the National [Wildlife Refuge](/usc/16/410hhh–1.md?p=6) [System](/usc/16/668ee.md?p=14), the National Wild and Scenic Rivers [System](/usc/16/668ee.md?p=14), the National Trails [System](/usc/16/668ee.md?p=14), the National [Wilderness](/usc/16/460mmm–1.md?p=6) Preservation [System](/usc/16/668ee.md?p=14), or a National Monument. - (k) **ERCOT—** This section shall not apply within the [area](/usc/16/539m–1.md?p=1-A) referred to in [section 824k(k)(2)(A) of this title](/usc/16/824k.md?p=k-2-A). # §824q. Native load service obligation - (a) **Definitions—** In this section: - (1) The term “distribution utility” means an [electric utility](/usc/16/796.md?p=22-A) that has a [service obligation](#a-3) to end-users or to a [State utility](#a-4) or electric cooperative that, directly or indirectly, through one or more additional [State utilities](#a-4) or electric cooperatives, provides electric service to end-users. - (2) The term “load-serving entity” means a [distribution utility](#a-1) or an [electric utility](/usc/16/796.md?p=22-A) that has a [service obligation](#a-3). - (3) The term “service obligation” means a requirement applicable to, or the exercise of authority granted to, an [electric utility](/usc/16/796.md?p=22-A) under Federal, [State](/usc/16/6456.md?p=2), or local law or under long-term contracts to provide electric service to end-users or to a [distribution utility](#a-1). - (4) The term “State utility” means a [State](/usc/16/6456.md?p=2) or any political [subdivision](/usc/16/539m–1.md?p=15) of a [State](/usc/16/6456.md?p=2), or any agency, authority, or instrumentality of any one or more of the foregoing, or a corporation that is wholly owned, directly or indirectly, by any one or more of the foregoing, competent to carry on the business of developing, transmitting, utilizing, or distributing power. - (b) **Meeting service obligations—** - (1) [Paragraph (2)](#b-2) applies to any [load-serving entity](#a-2) that, as of August 8, 2005— - (A) owns generation facilities, markets the output of Federal generation facilities, or holds rights under one or more wholesale contracts to purchase electric energy, for the purpose of meeting a [service obligation](#a-3); and - (B) by reason of ownership of transmission facilities, or one or more contracts or service agreements for firm transmission service, holds firm transmission rights for delivery of the output of the generation facilities or the purchased energy to meet the [service obligation](#a-3). - (2) Any [load-serving entity](#a-2) described in [paragraph (1)](#b-1) is entitled to use the firm transmission rights, or, equivalent tradable or financial transmission rights, in order to deliver the output or purchased energy, or the output of other generating facilities or purchased energy to the extent deliverable using the rights, to the extent required to meet the [service obligation](#a-3) of the [load-serving entity](#a-2). - (3) - (A) To the extent that all or a portion of the [service obligation](#a-3) covered by the firm transmission rights or equivalent tradable or financial transmission rights is transferred to another [load-serving entity](#a-2), the successor [load-serving entity](#a-2) shall be entitled to use the firm transmission rights or equivalent tradable or financial transmission rights associated with the transferred [service obligation](#a-3). - (B) Subsequent transfers to another [load-serving entity](#a-2), or back to the original [load-serving entity](#a-2), shall be entitled to the same rights. - (4) The [Commission](/usc/16/410cc–1.md?p=3) shall exercise the authority of the [Commission](/usc/16/410cc–1.md?p=3) under this chapter in a manner that facilitates the planning and expansion of transmission facilities to meet the reasonable needs of [load-serving entities](#a-2) to satisfy the [service obligations](#a-3) of the [load-serving entities](#a-2), and enables [load-serving entities](#a-2) to secure firm transmission rights (or equivalent tradable or financial rights) on a long-term basis for long-term power supply arrangements made, or planned, to meet such needs. - (c) **Allocation of transmission rights—** Nothing in subsections [(b)(1)](#b-1), [(b)(2)](#b-2), and [(b)(3)](#b-3) of this section shall affect any existing or future methodology employed by a Transmission Organization for allocating or auctioning transmission rights if such Transmission Organization was authorized by the [Commission](/usc/16/410cc–1.md?p=3) to allocate or auction financial transmission rights on its [system](/usc/16/668ee.md?p=14) as of January 1, 2005, and the [Commission](/usc/16/410cc–1.md?p=3) determines that any future allocation or auction is just, reasonable and not unduly discriminatory or preferential, provided, however, that if such a Transmission Organization never allocated financial transmission rights on its [system](/usc/16/668ee.md?p=14) that pertained to a period before January 1, 2005, with respect to any application by such Transmission Organization that would change its methodology the [Commission](/usc/16/410cc–1.md?p=3) shall exercise its authority in a manner consistent with the[^1] chapter and that takes into account the policies expressed in subsections [(b)(1)](#b-1), [(b)(2)](#b-2), and [(b)(3)](#b-3) as applied to firm transmission rights held by a [load-serving entity](#a-2) as of January 1, 2005, to the extent the associated generation ownership or power purchase arrangements remain in effect. - (d) **Certain transmission rights—** The [Commission](/usc/16/410cc–1.md?p=3) may exercise authority under this chapter to make transmission rights not used to meet an obligation covered by [subsection (b)](#b) available to other entities in a manner determined by the [Commission](/usc/16/410cc–1.md?p=3) to be just, reasonable, and not unduly discriminatory or preferential. - (e) **Obligation to build—** Nothing in this chapter relieves a [load-serving entity](#a-2) from any obligation under [State](/usc/16/6456.md?p=2) or local law to build transmission or distribution facilities adequate to meet the [service obligations](#a-3) of the [load-serving entity](#a-2). - (f) **Contracts—** Nothing in this section shall provide a basis for abrogating any contract or service agreement for firm transmission service or rights in effect as of August 8, 2005. If an ISO in the Western Interconnection had allocated financial transmission rights prior to August 8, 2005, but had not done so with respect to one or more [load-serving entities](#a-2)’ firm transmission rights held under contracts to which the preceding sentence applies (or held by reason of ownership or future ownership of transmission facilities), such [load-serving entities](#a-2) may not be required, without their consent, to convert such firm transmission rights to tradable or financial rights, except where the [load-serving entity](#a-2) has voluntarily joined the ISO as a participating transmission [owner](/usc/16/429b–3.md?p=4) (or its successor) in accordance with the ISO tariff. - (g) **Water pumping facilities—** The [Commission](/usc/16/410cc–1.md?p=3) shall ensure that any entity described in [section 824(f) of this title](/usc/16/824.md?p=f) that owns transmission facilities used predominately to support its own water pumping facilities shall have, with respect to the facilities, protections for transmission service comparable to those provided to [load-serving entities](#a-2) pursuant to this section. - (h) **ERCOT—** This section shall not apply within the [area](/usc/16/539m–1.md?p=1-A) referred to in [section 824k(k)(2)(A) of this title](/usc/16/824k.md?p=k-2-A). - (i) **Jurisdiction—** This section does not authorize the [Commission](/usc/16/410cc–1.md?p=3) to take any action not otherwise within the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3). - (j) **TVA area—** - (1) Subject to paragraphs [(2)](#j-2) and [(3)](#j-3), for purposes of [subsection (b)(1)(B)](#b-1-B), a [load-serving entity](#a-2) that is located within the service [area](/usc/16/539m–1.md?p=1-A) of the Tennessee Valley Authority and that has a firm wholesale power supply contract with the Tennessee Valley Authority shall be considered to hold firm transmission rights for the transmission of the power provided. - (2) Nothing in this subsection affects the requirements of [section 824k(j) of this title](/usc/16/824k.md?p=j). - (3) The [Commission](/usc/16/410cc–1.md?p=3) shall not issue an order on the basis of this subsection that is contrary to the purposes of [section 824k(j) of this title](/usc/16/824k.md?p=j). - (k) **Effect of exercising rights—** An entity that to the extent required to meet its [service obligations](#a-3) exercises rights described in [subsection (b)](#b) shall not be considered by such action as engaging in undue discrimination or preference under this chapter. # §824r. Protection of transmission contracts in the Pacific Northwest - (a) **Definition of electric utility or person—** In this section, the term “electric utility or person” means an electric utility or person that— - (1) as of August 8, 2005, holds firm transmission rights pursuant to contract or by reason of ownership of transmission facilities; and - (2) is located— - (A) in the Pacific Northwest, as that [region](/usc/16/1447a.md?p=6) is defined in [section 839a of this title](/usc/16/839a.md); or - (B) in that portion of a [State](/usc/16/6456.md?p=2) included in the geographic [area](/usc/16/539m–1.md?p=1-A) proposed for a regional transmission organization in [Commission](/usc/16/410cc–1.md?p=3) Docket Number RT01–35 on the date on which that docket was opened. - (b) **Protection of transmission contracts—** Nothing in this chapter confers on the [Commission](/usc/16/410cc–1.md?p=3) the authority to require an [electric utility or person](#a) to convert to tradable or financial rights— - (1) firm transmission rights described in [subsection (a)](#a); or - (2) firm transmission rights obtained by exercising contract or tariff rights associated with the firm transmission rights described in [subsection (a)](#a). # §824s. Transmission infrastructure investment - (a) **Rulemaking requirement—** Not later than 1 year after August 8, 2005, the [Commission](/usc/16/410cc–1.md?p=3) shall establish, by rule, incentive-based (including performance-based) rate treatments for the transmission of electric energy in interstate commerce by [public utilities](/usc/16/824.md?p=e) for the purpose of benefitting consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion. - (b) **Contents—** The rule shall— - (1) promote reliable and economically efficient transmission and generation of electricity by promoting capital investment in the enlargement, improvement, maintenance, and operation of all facilities for the transmission of electric energy in interstate commerce, regardless of the ownership of the facilities; - (2) provide a return on equity that attracts new investment in transmission facilities (including related transmission technologies); - (3) encourage deployment of transmission technologies and other measures to increase the capacity and efficiency of existing transmission facilities and improve the operation of the facilities; and - (4) allow recovery of— - (A) all prudently incurred costs necessary to comply with mandatory reliability standards issued pursuant to [section 824o](/usc/16/824o.md) of this title; and - (B) all prudently incurred costs related to transmission infrastructure development pursuant to [section 824p of this title](/usc/16/824p.md). - (c) **Incentives—** In the rule issued under this section, the [Commission](/usc/16/410cc–1.md?p=3) shall, to the extent within its jurisdiction, provide for incentives to each [transmitting utility](/usc/16/796.md?p=23) or [electric utility](/usc/16/796.md?p=22-A) that joins a Transmission Organization. The [Commission](/usc/16/410cc–1.md?p=3) shall ensure that any costs recoverable pursuant to this subsection may be recovered by such utility through the transmission rates charged by such utility or through the transmission rates charged by the Transmission Organization that provides transmission service to such utility. - (d) **Just and reasonable rates—** All rates approved under the rules adopted pursuant to this section, including any revisions to the rules, are subject to the requirements of sections [824d](/usc/16/824d.md) and [824e](/usc/16/824e.md) of this title that all rates, charges, terms, and conditions be just and reasonable and not unduly discriminatory or preferential. # §824s–1. Incentives for cybersecurity investments - (a) **Definitions—** In this section: - (1) **Advanced cybersecurity technology—** The term “advanced cybersecurity technology” means any technology, operational capability, or service, including computer hardware, software, or a related asset, that enhances the [security](/usc/16/796.md?p=16) posture of [public utilities](/usc/16/824.md?p=e) through improvements in the ability to protect against, detect, respond to, or recover from a cybersecurity threat (as defined in [section 650 of title 6](/usc/6/650.md)). - (2) **Advanced cybersecurity technology information—** The term “advanced cybersecurity technology information” means information relating to [advanced cybersecurity technology](#a-1) or proposed [advanced cybersecurity technology](#a-1) that is generated by or provided to the [Commission](/usc/16/410cc–1.md?p=3) or another Federal agency. - (b) **Study—** Not later than 180 days after November 15, 2021, the [Commission](/usc/16/410cc–1.md?p=3), in consultation with the [Secretary](/usc/16/410r–5.md?p=c-1) of Energy, the North American Electric Reliability Corporation, the Electricity Subsector Coordinating [Council](/usc/16/460mmm–1.md?p=2), and the National Association of Regulatory Utility [Commissioners](/usc/16/3601.md?p=3), shall conduct a study to identify incentive-based, including performance-based, rate treatments for the transmission and sale of electric energy subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) that could be used to encourage— - (1) investment by [public utilities](/usc/16/824.md?p=e) in [advanced cybersecurity technology](#a-1); and - (2) participation by [public utilities](/usc/16/824.md?p=e) in cybersecurity threat information sharing [programs](/usc/16/460ss–6.md?p=1). - (c) **Incentive-based rate treatment—** Not later than 1 year after the completion of the study under [subsection (b)](#b), the [Commission](/usc/16/410cc–1.md?p=3) shall establish, by rule, incentive-based, including performance-based, rate treatments for the transmission of electric energy in interstate commerce and the [sale of electric energy at wholesale](/usc/16/824.md?p=d) in interstate commerce by [public utilities](/usc/16/824.md?p=e) for the purpose of benefitting consumers by encouraging— - (1) investments by [public utilities](/usc/16/824.md?p=e) in [advanced cybersecurity technology](#a-1); and - (2) participation by [public utilities](/usc/16/824.md?p=e) in cybersecurity threat information sharing [programs](/usc/16/460ss–6.md?p=1). - (d) **Factors for consideration—** In issuing a rule pursuant to this section, the [Commission](/usc/16/410cc–1.md?p=3) may provide additional incentives beyond those identified in [subsection (c)](#c) in any case in which the [Commission](/usc/16/410cc–1.md?p=3) determines that an investment in [advanced cybersecurity technology](#a-1) or information sharing [program](/usc/16/460ss–6.md?p=1) costs will reduce cybersecurity risks to— - (1) defense critical electric infrastructure (as defined in [section 824o–1(a)](/usc/16/824o–1.md?p=a) of this title) and other facilities subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) that are critical to public safety, national defense, or homeland [security](/usc/16/796.md?p=16), as determined by the [Commission](/usc/16/410cc–1.md?p=3) in consultation with— - (A) the [Secretary](/usc/16/410r–5.md?p=c-1) of Energy; - (B) the [Secretary](/usc/16/410r–5.md?p=c-1) of Homeland [Security](/usc/16/796.md?p=16); and - (C) other appropriate Federal agencies; and - (2) facilities of small or medium-sized [public utilities](/usc/16/824.md?p=e) with limited cybersecurity [resources](/usc/16/410hhh–1.md?p=8), as determined by the [Commission](/usc/16/410cc–1.md?p=3). - (e) **Ratepayer protection—** - (1) **In general—** Any rate approved under a rule issued pursuant to this section, including any revisions to that rule, shall be subject to the requirements of sections [824d](/usc/16/824d.md) and [824e](/usc/16/824e.md) of this title that all rates, charges, terms, and conditions— - (A) shall be just and reasonable; and - (B) shall not be unduly discriminatory or preferential. - (2) **Prohibition of duplicate recovery—** Any rule issued pursuant to this section shall preclude rate treatments that allow unjust and unreasonable double recovery for [advanced cybersecurity technology](#a-1). - (f) **Single-issue rate filings—** The [Commission](/usc/16/410cc–1.md?p=3) shall permit [public utilities](/usc/16/824.md?p=e) to apply for incentive-based rate treatment under a rule issued under this section on a single-issue basis by submitting to the [Commission](/usc/16/410cc–1.md?p=3) a tariff schedule under [section 824d of this title](/usc/16/824d.md) that permits recovery of costs and incentives over the depreciable life of the applicable assets, without regard to changes in receipts or other costs of the [public utility](/usc/16/824.md?p=e). - (g) **Protection of information—** [Advanced cybersecurity technology information](#a-2) that is provided to, generated by, or collected by the Federal Government under subsection [(b)](#b), [(c)](#c), or [(f)](#f) shall be considered to be critical electric infrastructure information under [section 824o–1](/usc/16/824o–1.md) of this title. # §824t. Electricity market transparency rules - (a) **In general—** - (1) The [Commission](/usc/16/410cc–1.md?p=3) is directed to facilitate price transparency in markets for the sale and transmission of electric energy in interstate commerce, having due regard for the public interest, the integrity of those markets, fair competition, and the protection of consumers. - (2) The [Commission](/usc/16/410cc–1.md?p=3) may prescribe such rules as the [Commission](/usc/16/410cc–1.md?p=3) determines necessary and appropriate to carry out the purposes of this section. The rules shall provide for the dissemination, on a timely basis, of information about the availability and prices of wholesale electric energy and transmission service to the [Commission](/usc/16/410cc–1.md?p=3), [State commissions](/usc/16/796.md?p=21), buyers and sellers of wholesale electric energy, users of transmission services, and the public. - (3) The [Commission](/usc/16/410cc–1.md?p=3) may— - (A) obtain the information described in [paragraph (2)](#a-2) from any market participant; and - (B) rely on entities other than the [Commission](/usc/16/410cc–1.md?p=3) to receive and make public the information, subject to the disclosure rules in [subsection (b)](#b). - (4) In carrying out this section, the [Commission](/usc/16/410cc–1.md?p=3) shall consider the degree of price transparency provided by existing price publishers and providers of trade processing services, and shall rely on such publishers and services to the maximum extent possible. The [Commission](/usc/16/410cc–1.md?p=3) may establish an electronic information [system](/usc/16/668ee.md?p=14) if it determines that existing price publications are not adequately providing price discovery or market transparency. Nothing in this section, however, shall affect any electronic information filing requirements in effect under this chapter as of August 8, 2005. - (b) **Exemption of information from disclosure—** - (1) Rules described in [subsection (a)(2)](#a-2), if adopted, shall exempt from disclosure information the [Commission](/usc/16/410cc–1.md?p=3) determines would, if disclosed, be detrimental to the operation of an effective market or jeopardize [system](/usc/16/668ee.md?p=14) [security](/usc/16/796.md?p=16). - (2) In determining the information to be made available under this section and time to make the information available, the [Commission](/usc/16/410cc–1.md?p=3) shall seek to ensure that consumers and competitive markets are protected from the adverse effects of potential collusion or other anticompetitive behaviors that can be facilitated by untimely public disclosure of transaction-specific information. - (c) **Information sharing—** - (1) Within 180 days of August 8, 2005, the [Commission](/usc/16/410cc–1.md?p=3) shall conclude a memorandum of understanding with the Commodity Futures Trading [Commission](/usc/16/410cc–1.md?p=3) relating to information sharing, which shall include, among other things, provisions ensuring that information requests to markets within the respective jurisdiction of each agency are properly coordinated to minimize duplicative information requests, and provisions regarding the treatment of proprietary trading information. - (2) Nothing in this section may be construed to limit or affect the exclusive jurisdiction of the Commodity Futures Trading [Commission](/usc/16/410cc–1.md?p=3) under the Commodity Exchange Act ([7 U.S.C. 1](/usc/7/1.md) et seq.). - (d) **Exemption from reporting requirements—** The [Commission](/usc/16/410cc–1.md?p=3) shall not require entities who have a de minimis market presence to comply with the reporting requirements of this section. - (e) **Penalties for violations occurring before notice—** - (1) Except as provided in [paragraph (2)](#e-2), no [person](/usc/16/450rr–1.md?p=b) shall be subject to any civil penalty under this section with respect to any [violation](/usc/16/620e.md?p=11) occurring more than 3 years before the date on which the [person](/usc/16/450rr–1.md?p=b) is provided notice of the proposed penalty under [section 825o–1](/usc/16/825o–1.md) of this title. - (2) [Paragraph (1)](#e-1) shall not apply in any case in which the [Commission](/usc/16/410cc–1.md?p=3) finds that a seller that has entered into a contract for the [sale of electric energy at wholesale](/usc/16/824.md?p=d) or transmission service subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) has engaged in fraudulent market manipulation activities materially affecting the contract in [violation](/usc/16/620e.md?p=11) of [section 824v of this title](/usc/16/824v.md). - (f) **ERCOT utilities—** This section shall not apply to a transaction for the purchase or sale of wholesale electric energy or transmission services within the [area](/usc/16/539m–1.md?p=1-A) described in [section 824k(k)(2)(A) of this title](/usc/16/824k.md?p=k-2-A). # §824u. Prohibition on filing false information No entity (including an entity described in [section 824(f) of this title](/usc/16/824.md?p=f)) shall willfully and knowingly report any information relating to the price of electricity sold at wholesale or the availability of transmission capacity, which information the [person](/usc/16/450rr–1.md?p=b) or any other entity knew to be false at the time of the reporting, to a Federal agency with intent to fraudulently affect the data being compiled by the Federal agency. # §824v. Prohibition of energy market manipulation - (a) **In general—** It shall be unlawful for any entity (including an entity described in [section 824(f) of this title](/usc/16/824.md?p=f)), directly or indirectly, to use or employ, in connection with the purchase or sale of electric energy or the purchase or sale of transmission services subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), any manipulative or deceptive device or contrivance (as those terms are used in [section 78j(b) of title 15](/usc/15/78j.md?p=b)), in contravention of such rules and regulations as the [Commission](/usc/16/410cc–1.md?p=3) may prescribe as necessary or appropriate in the public interest or for the protection of electric ratepayers. - (b) **No private right of action—** Nothing in this section shall be construed to create a private right of action. # §824w. Joint boards on economic dispatch - (a) **In general—** The [Commission](/usc/16/410cc–1.md?p=3) shall convene joint [boards](/usc/16/1447a.md?p=1) on a regional basis pursuant to [section 824h of this title](/usc/16/824h.md) to study the issue of [security](/usc/16/796.md?p=16) constrained economic dispatch for the various market [regions](/usc/16/1447a.md?p=6). The [Commission](/usc/16/410cc–1.md?p=3) shall designate the appropriate [regions](/usc/16/1447a.md?p=6) to be covered by each such joint [board](/usc/16/1447a.md?p=1) for purposes of this section. - (b) **Membership—** The [Commission](/usc/16/410cc–1.md?p=3) shall request each [State](/usc/16/6456.md?p=2) to nominate a [representative](/usc/16/5609.md?p=13) for the appropriate regional joint [board](/usc/16/1447a.md?p=1), and shall designate a member of the [Commission](/usc/16/410cc–1.md?p=3) to chair and participate as a member of each such [board](/usc/16/1447a.md?p=1). - (c) **Powers—** The sole authority of each joint [board](/usc/16/1447a.md?p=1) convened under this section shall be to consider issues relevant to what constitutes “[security](/usc/16/796.md?p=16) constrained economic dispatch” and how such a mode of operating an electric energy [system](/usc/16/668ee.md?p=14) affects or enhances the reliability and affordability of service to customers in the [region](/usc/16/1447a.md?p=6) concerned and to make recommendations to the [Commission](/usc/16/410cc–1.md?p=3) regarding such issues. - (d) **Report to the Congress—** Within 1 year after August 8, 2005, the [Commission](/usc/16/410cc–1.md?p=3) shall issue a report and submit such report to the Congress regarding the recommendations of the joint [boards](/usc/16/1447a.md?p=1) under this section and the [Commission](/usc/16/410cc–1.md?p=3) may consolidate the recommendations of more than one such regional joint [board](/usc/16/1447a.md?p=1), including any consensus recommendations for statutory or regulatory reform. # §825. Accounts and records - (a) **Duty to keep—** Every [licensee](/usc/16/796.md?p=5) and public utility shall make, keep, and [preserve](/usc/16/410hhh–1.md?p=7) for such periods, such accounts, records of cost-accounting procedures, correspondence, memoranda, papers, books, and other records as the [Commission](/usc/16/410cc–1.md?p=3) may by rules and regulations prescribe as necessary or appropriate for purposes of the administration of this chapter, including accounts, records, and memoranda of the generation, transmission, distribution, delivery, or sale of electric energy, the furnishing of services or facilities in connection therewith, and receipts and expenditures with respect to any of the foregoing: Provided, however, That nothing in this chapter shall relieve any public utility from keeping any accounts, memoranda, or records which such public utility may be required to keep by or under authority of the laws of any [State](/usc/16/6456.md?p=2). The [Commission](/usc/16/410cc–1.md?p=3) may prescribe a [system](/usc/16/668ee.md?p=14) of accounts to be kept by [licensees](/usc/16/796.md?p=5) and public utilities and may classify such [licensees](/usc/16/796.md?p=5) and public utilities and prescribe a [system](/usc/16/668ee.md?p=14) of accounts for each class. The [Commission](/usc/16/410cc–1.md?p=3), after notice and opportunity for hearing, may determine by order the accounts in which particular outlays and receipts shall be entered, charged, or credited. The burden of proof to justify every accounting entry questioned by the [Commission](/usc/16/410cc–1.md?p=3) shall be on the [person](/usc/16/450rr–1.md?p=b) making, authorizing, or requiring such entry, and the [Commission](/usc/16/410cc–1.md?p=3) may suspend a charge or credit pending submission of satisfactory proof in support thereof. - (b) **Access to and examination by the Commission—** The [Commission](/usc/16/410cc–1.md?p=3) shall at all times have access to and the right to inspect and examine all accounts, records, and memoranda of [licensees](/usc/16/796.md?p=5) and public utilities, and it shall be the duty of such [licensees](/usc/16/796.md?p=5) and public utilities to furnish to the [Commission](/usc/16/410cc–1.md?p=3), within such reasonable time as the [Commission](/usc/16/410cc–1.md?p=3) may order, any information with respect thereto which the [Commission](/usc/16/410cc–1.md?p=3) may by order require, including copies of [maps](/usc/16/430f–7.md?p=1), contracts, reports of engineers, and other data, records, and papers, and to grant to all agents of the [Commission](/usc/16/410cc–1.md?p=3) free access to its property and its accounts, records, and memoranda when requested so to do. No member, officer, or employee of the [Commission](/usc/16/410cc–1.md?p=3) shall divulge any fact or information which may come to his knowledge during the course of examination of books or other accounts, as hereinbefore provided, except insofar as he may be directed by the [Commission](/usc/16/410cc–1.md?p=3) or by a court. - (c) **Controlling individual—** The books, accounts, memoranda, and records of any [person](/usc/16/450rr–1.md?p=b) who controls, directly or indirectly, a [licensee](/usc/16/796.md?p=5) or public utility subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), and of any other company controlled by such [person](/usc/16/450rr–1.md?p=b), insofar as they relate to transactions with or the business of such [licensee](/usc/16/796.md?p=5) or public utility, shall be subject to examination on the order of the [Commission](/usc/16/410cc–1.md?p=3). # §825a. Rates of depreciation; notice to State authorities before fixing - (a) The [Commission](/usc/16/410cc–1.md?p=3) may, after hearing, require [licensees](/usc/16/796.md?p=5) and public utilities to carry a proper and adequate depreciation account in accordance with such rules, regulations, and forms of account as the [Commission](/usc/16/410cc–1.md?p=3) may prescribe. The [Commission](/usc/16/410cc–1.md?p=3) may, from time to time, ascertain and determine, and by order fix, the proper and adequate rates of depreciation of the several classes of property of each [licensee](/usc/16/796.md?p=5) and public utility. Each [licensee](/usc/16/796.md?p=5) and public utility shall conform its depreciation accounts to the rates so ascertained, determined, and fixed. The [licensees](/usc/16/796.md?p=5) and public utilities subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3) shall not charge to operating expenses any depreciation charges on classes of property other than those prescribed by the [Commission](/usc/16/410cc–1.md?p=3), or charge with respect to any class of property a percentage of depreciation other than that prescribed therefor by the [Commission](/usc/16/410cc–1.md?p=3). No such [licensee](/usc/16/796.md?p=5) or public utility shall in any case include in any form under its operating or other expenses any depreciation or other charge or expenditure included elsewhere as a depreciation charge or otherwise under its operating or other expenses. Nothing in this section shall limit the power of a [State commission](/usc/16/796.md?p=21) to determine in the exercise of its jurisdiction, with respect to any public utility, the percentage rate of depreciation to be allowed, as to any class of property of such public utility, or the composite depreciation rate, for the purpose of determining rates or charges. - (b) The [Commission](/usc/16/410cc–1.md?p=3), before prescribing any rules or requirements as to accounts, records, or memoranda, or as to depreciation rates, shall notify each [State commission](/usc/16/796.md?p=21) having jurisdiction with respect to any public utility involved, and shall give reasonable opportunity to each such [commission](/usc/16/410cc–1.md?p=3) to present its views, and shall receive and consider such views and recommendations. # §825b. Requirements applicable to agencies of United States All agencies of the United States engaged in the generation and sale of electric energy for ultimate distribution to the public shall be subject, as to all facilities used for such generation and sale, and as to the electric energy sold by such agency, to the provisions of sections [825](/usc/16/825.md) and [825a](/usc/16/825a.md) of this title, so far as may be practicable, and shall comply with the provisions of such sections and with the rules and regulations of the [Commission](/usc/16/410cc–1.md?p=3) thereunder to the same extent as may be required in the case of a public utility. # §825c. Periodic and special reports; obstructing filing reports or keeping accounts, etc. - (a) Every [licensee](/usc/16/796.md?p=5) and every public utility shall file with the [Commission](/usc/16/410cc–1.md?p=3) such annual and other periodic or special reports as the [Commission](/usc/16/410cc–1.md?p=3) may by rules and regulations or order prescribe as necessary or appropriate to assist the [Commission](/usc/16/410cc–1.md?p=3) in the proper administration of this chapter. The [Commission](/usc/16/410cc–1.md?p=3) may prescribe the manner and form in which such reports shall be made, and require from such [persons](/usc/16/450rr–1.md?p=b) specific answers to all questions upon which the [Commission](/usc/16/410cc–1.md?p=3) may need information. The [Commission](/usc/16/410cc–1.md?p=3) may require that such reports shall include, among other things, full information as to assets and liabilities, capitalization, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and other reserves, cost of [project](/usc/16/410r–5.md?p=c-4) and other facilities, cost of maintenance and operation of the [project](/usc/16/410r–5.md?p=c-4) and other facilities, cost of renewals and replacement of the [project](/usc/16/410r–5.md?p=c-4) works and other facilities, depreciation, generation, transmission, distribution, delivery, use, and sale of electric energy. The [Commission](/usc/16/410cc–1.md?p=3) may require any such [person](/usc/16/450rr–1.md?p=b) to make adequate provision for currently determining such costs and other facts. Such reports shall be made under oath unless the [Commission](/usc/16/410cc–1.md?p=3) otherwise specifies. - (b) It shall be unlawful for any [person](/usc/16/450rr–1.md?p=b) willfully to hinder, delay, or obstruct the making, filing, or keeping of any information, document, report, memorandum, record, or account required to be made, filed, or kept under this chapter or any rule, regulation, or order thereunder. # §825d. Officials dealing in securities - (a) **Benefits; making or declaring dividends out of capital account—** It shall be unlawful for any officer or director of any public utility to receive for his own benefit, directly or indirectly, any money or thing of value in respect of the negotiation, hypothecation, or sale by such public utility of any [security](/usc/16/796.md?p=16) issued or to be issued by such public utility, or to share in any of the proceeds thereof, or to participate in the making or paying of any dividends of such public utility from any [funds](/usc/16/1421h.md?p=2) properly included in capital account. - (b) **Interlocking directorates—** - (1) **In general—** After 6 months from August 26, 1935, it shall be unlawful for any [person](/usc/16/450rr–1.md?p=b) to hold the position of officer or director of more than one public utility or to hold the position of officer or director of a public utility and the position of officer or director of any bank, [trust](/usc/16/450ss–1.md?p=4) company, banking association, or firm that is authorized by law to underwrite or participate in the marketing of [securities](/usc/16/796.md?p=16) of a public utility, or officer or director of any company supplying electrical equipment to such public utility, unless the holding of such positions shall have been authorized by order of the [Commission](/usc/16/410cc–1.md?p=3), upon due showing in form and manner prescribed by the [Commission](/usc/16/410cc–1.md?p=3), that neither public nor private interests will be adversely affected thereby. The [Commission](/usc/16/410cc–1.md?p=3) shall not grant any such authorization in respect of such positions held on August 26, 1935, unless application for such authorization is filed with the [Commission](/usc/16/410cc–1.md?p=3) within sixty days after that date. - (2) **Applicability—** - (A) **In general—** In the circumstances described in [subparagraph (B)](#b-2-B), [paragraph (1)](#b-1) shall not apply to a [person](/usc/16/450rr–1.md?p=b) that holds or proposes to hold the positions of— - (i) officer or director of a public utility; and - (ii) officer or director of a bank, [trust](/usc/16/450ss–1.md?p=4) company, banking association, or firm authorized by law to underwrite or participate in the marketing of [securities](/usc/16/796.md?p=16) of a public utility. - (B) **Circumstances—** The circumstances described in this subparagraph are that— - (i) a [person](/usc/16/450rr–1.md?p=b) described in [subparagraph (A)](#b-2-A) does not participate in any deliberations or decisions of the public utility regarding the selection of a bank, [trust](/usc/16/450ss–1.md?p=4) company, banking association, or firm to underwrite or participate in the marketing of [securities](/usc/16/796.md?p=16) of the public utility, if the [person](/usc/16/450rr–1.md?p=b) serves as an officer or director of a bank, [trust](/usc/16/450ss–1.md?p=4) company, banking association, or firm that is under consideration in the deliberation process; - (ii) the bank, [trust](/usc/16/450ss–1.md?p=4) company, banking association, or firm of which the [person](/usc/16/450rr–1.md?p=b) is an officer or director does not engage in the underwriting of, or participate in the marketing of, [securities](/usc/16/796.md?p=16) of the public utility of which the [person](/usc/16/450rr–1.md?p=b) holds the position of officer or director; - (iii) the public utility for which the [person](/usc/16/450rr–1.md?p=b) serves or proposes to serve as an officer or director selects underwriters by competitive procedures; or - (iv) the issuance of [securities](/usc/16/796.md?p=16) of the public utility for which the [person](/usc/16/450rr–1.md?p=b) serves or proposes to serve as an officer or director has been approved by all Federal and [State](/usc/16/6456.md?p=2) regulatory agencies having jurisdiction over the issuance. - (c) **Statement of prior positions; definitions—** - (1) On or before April 30 of each year, any [person](/usc/16/450rr–1.md?p=b), who, during the calendar year preceding the filing date under this subsection, was an officer or director of a [public utility](#c-3-A) and who held, during such calendar year, the position of officer, director, partner, appointee, or [representative](/usc/16/5609.md?p=13) of any other entity listed in [paragraph (2)](#c-2) shall file with the [Commission](/usc/16/410cc–1.md?p=3), in such form and manner as the [Commission](/usc/16/410cc–1.md?p=3) shall by rule prescribe, a written statement concerning such positions held by such [person](/usc/16/450rr–1.md?p=b). Such statement shall be available to the public. - (2) The entities listed for purposes of [paragraph (1)](#c-1) are as follows— - (A) any investment bank, bank [holding company](#c-3-B), foreign bank or subsidiary thereof doing business in the United States, insurance company, or any other organization primarily engaged in the business of providing financial services or credit, a mutual savings bank, or a savings and loan association; - (B) any company, firm, or organization which is authorized by law to underwrite or participate in the marketing of [securities](/usc/16/796.md?p=16) of a [public utility](#c-3-A); - (C) any company, firm, or organization which produces or supplies electrical equipment or coal, natural gas, oil, nuclear fuel, or other fuel, for the use of any [public utility](#c-3-A); - (D) any company, firm, or organization which during any one of the 3 calendar years immediately preceding the filing date was one of the 20 purchasers of electric energy which purchased (for purposes other than for resale) one of the 20 largest annual amounts of electric energy sold by such [public utility](#c-3-A) (or by any [public utility](#c-3-A) which is part of the same [holding company system](#c-3-B)) during any one of such three calendar years; - (E) any entity referred to in [subsection (b)](#b); and - (F) any company, firm, or organization which is controlled by any company, firm, or organization referred to in this paragraph. On or before January 31 of each calendar year, each [public utility](#c-3-A) shall publish a list, pursuant to rules prescribed by the [Commission](/usc/16/410cc–1.md?p=3), of the purchasers to which [subparagraph (D)](#c-2-D) applies, for purposes of any filing under [paragraph (1)](#c-1) of such calendar year. - (3) For purposes of this subsection— - (A) The term “public utility” includes any company which is a part of a [holding company system](#c-3-B) which includes a [registered holding company](#c-3-B), unless no company in such [system](/usc/16/668ee.md?p=14) is an [electric utility](/usc/16/796.md?p=22-A). - (B) The terms “holding company”, “registered holding company”, and “holding company system” have the same meaning as when used in the [Public Utility](#c-3-A) Holding Company Act of 1935.[^1] # §825e. Complaints Any [person](/usc/16/450rr–1.md?p=b), [electric utility](/usc/16/796.md?p=22-A), [State](/usc/16/6456.md?p=2), [municipality](/usc/16/2708.md?p=a-7), or [State commission](/usc/16/796.md?p=21) complaining of anything done or omitted to be done by any [licensee](/usc/16/796.md?p=5), [transmitting utility](/usc/16/796.md?p=23), or public utility in contravention of the provisions of this chapter may apply to the [Commission](/usc/16/410cc–1.md?p=3) by petition which shall briefly [state](/usc/16/6456.md?p=2) the facts, whereupon a statement of the complaint thus made shall be forwarded by the [Commission](/usc/16/410cc–1.md?p=3) to such [licensee](/usc/16/796.md?p=5), [transmitting utility](/usc/16/796.md?p=23), or public utility, who shall be called upon to satisfy the complaint or to answer the same in writing within a reasonable time to be specified by the [Commission](/usc/16/410cc–1.md?p=3). If such [licensee](/usc/16/796.md?p=5), [transmitting utility](/usc/16/796.md?p=23), or public utility shall not satisfy the complaint within the time specified or there shall appear to be any reasonable ground for investigating such complaint, it shall be the duty of the [Commission](/usc/16/410cc–1.md?p=3) to investigate the matters complained of in such manner and by such means as it shall find proper. # §825f. Investigations by Commission - (a) **Scope—** The [Commission](/usc/16/410cc–1.md?p=3) may investigate any facts, conditions, practices, or matters which it may find necessary or proper in order to determine whether any [person](/usc/16/450rr–1.md?p=b), [electric utility](/usc/16/796.md?p=22-A), [transmitting utility](/usc/16/796.md?p=23), or other entity has violated or is about to violate any provision of this chapter or any rule, regulation, or order thereunder, or to aid in the enforcement of the provisions of this chapter or in prescribing rules or regulations thereunder, or in obtaining information to serve as a basis for recommending further legislation concerning the matters to which this chapter relates, or in obtaining information about the sale of electric energy at wholesale in interstate commerce and the transmission of electric energy in interstate commerce. The [Commission](/usc/16/410cc–1.md?p=3) may permit any [person](/usc/16/450rr–1.md?p=b), [electric utility](/usc/16/796.md?p=22-A), [transmitting utility](/usc/16/796.md?p=23), or other entity to file with it a statement in writing under oath or otherwise, as it shall determine, as to any or all facts and circumstances concerning a matter which may be the subject of investigation. The [Commission](/usc/16/410cc–1.md?p=3), in its discretion, may publish or make available to [State commissions](/usc/16/796.md?p=21) information concerning any such subject. - (b) **Attendance of witnesses and production of documents—** For the purpose of any investigation or any other proceeding under this chapter, any member of the [Commission](/usc/16/410cc–1.md?p=3), or any officer designated by it, is empowered to administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, contracts, agreements, or other records which the [Commission](/usc/16/410cc–1.md?p=3) finds relevant or material to the inquiry. Such attendance of witnesses and the production of any such records may be required from any place in the United States at any designated place of hearing. Witnesses summoned by the [Commission](/usc/16/410cc–1.md?p=3) to appear before it shall be paid the same fees and mileage that are paid witnesses in the courts of the United States. - (c) **Resort to courts of United States for failure to obey subpena; punishment—** In case of contumacy by, or refusal to obey a subpena issued to, any [person](/usc/16/450rr–1.md?p=b), the [Commission](/usc/16/410cc–1.md?p=3) may invoke the aid of any court of the United States within the jurisdiction of which such investigation or proceeding is carried on, or where such [person](/usc/16/450rr–1.md?p=b) resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, contracts, agreements, and other records. Such court may issue an order requiring such [person](/usc/16/450rr–1.md?p=b) to appear before the [Commission](/usc/16/410cc–1.md?p=3) or member or officer designated by the [Commission](/usc/16/410cc–1.md?p=3), there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question; and any failure to obey such order of the court may be punished by such court as a contempt thereof. All process in any such case may be served in the judicial district whereof such [person](/usc/16/450rr–1.md?p=b) is an inhabitant or wherever he may be found or may be doing business. Any [person](/usc/16/450rr–1.md?p=b) who willfully shall fail or refuse to attend and testify or to answer any lawful inquiry or to produce books, papers, correspondence, memoranda, contracts, agreements, or other records, if in his or its power so to do, in obedience to the subpena of the [Commission](/usc/16/410cc–1.md?p=3), shall be guilty of a misdemeanor and, upon conviction, shall be subject to a fine of not more than $1,000 or to imprisonment for a term of not more than one year, or both. - (d) **Testimony by deposition—** The testimony of any witness may be taken, at the instance of a party, in any proceeding or investigation pending before the [Commission](/usc/16/410cc–1.md?p=3), by deposition, at any time after the proceeding is at issue. The [Commission](/usc/16/410cc–1.md?p=3) may also order testimony to be taken by deposition in any proceeding or investigation pending before it, at any stage of such proceeding or investigation. Such depositions may be taken before any [person](/usc/16/450rr–1.md?p=b) authorized to administer oaths not being of counsel or attorney to either of the parties, nor interested in the proceeding or investigation. Reasonable notice must first be given in writing by the party or his attorney proposing to take such deposition to the opposite party or his attorney of record, as either may be nearest, which notice shall [state](/usc/16/6456.md?p=2) the name of the witness and the time and place of the taking of his deposition. Any [person](/usc/16/450rr–1.md?p=b) may be compelled to appear and depose, and to produce documentary evidence, in the same manner as witnesses may be compelled to appear and testify and produce documentary evidence before the [Commission](/usc/16/410cc–1.md?p=3), as hereinbefore provided. Such testimony shall be reduced to writing by the [person](/usc/16/450rr–1.md?p=b) taking the deposition, or under his direction, and shall, after it has been reduced to writing, be subscribed by the deponent. - (e) **Deposition of witness in a foreign country—** If a witness whose testimony may be desired to be taken by deposition be in a foreign country, the deposition may be taken before an officer or [person](/usc/16/450rr–1.md?p=b) designated by the [Commission](/usc/16/410cc–1.md?p=3), or agreed upon by the parties by stipulation in writing to be filed with the [Commission](/usc/16/410cc–1.md?p=3). All depositions must be promptly filed with the [Commission](/usc/16/410cc–1.md?p=3). - (f) **Deposition fees—** Witnesses whose depositions are taken as authorized in this chapter, and the [person](/usc/16/450rr–1.md?p=b) or officer taking the same, shall be entitled to the same fees as are paid for like services in the courts of the United States. # §825g. Hearings; rules of procedure - (a) Hearings under this chapter may be held before the [Commission](/usc/16/410cc–1.md?p=3), any member or members thereof or any [representative](/usc/16/5609.md?p=13) of the [Commission](/usc/16/410cc–1.md?p=3) designated by it, and appropriate records thereof shall be kept. In any proceeding before it, the [Commission](/usc/16/410cc–1.md?p=3), in accordance with such rules and regulations as it may prescribe, may admit as a party any interested [State](/usc/16/6456.md?p=2), [State commission](/usc/16/796.md?p=21), [municipality](/usc/16/2708.md?p=a-7), or any [representative](/usc/16/5609.md?p=13) of interested consumers or [security](/usc/16/796.md?p=16) holders, or any competitor of a party to such proceeding, or any other [person](/usc/16/450rr–1.md?p=b) whose participation in the proceeding may be in the public interest. - (b) All hearings, investigations, and proceedings under this chapter shall be governed by rules of practice and procedure to be adopted by the [Commission](/usc/16/410cc–1.md?p=3), and in the conduct thereof the technical rules of evidence need not be applied. No informality in any hearing, investigation, or proceeding or in the manner of taking testimony shall invalidate any order, decision, rule, or regulation issued under the authority of this chapter. # §825h. Administrative powers of Commission; rules, regulations, and orders The [Commission](/usc/16/410cc–1.md?p=3) shall have power to perform any and all acts, and to prescribe, issue, make, amend, and rescind such orders, rules, and regulations as it may find necessary or appropriate to carry out the provisions of this chapter. Among other things, such rules and regulations may define accounting, technical, and trade terms used in this chapter; and may prescribe the form or forms of all statements, declarations, applications, and reports to be filed with the [Commission](/usc/16/410cc–1.md?p=3), the information which they shall contain, and the time within which they shall be filed. Unless a different date is specified therein, rules and regulations of the [Commission](/usc/16/410cc–1.md?p=3) shall be effective thirty days after publication in the manner which the [Commission](/usc/16/410cc–1.md?p=3) shall prescribe. Orders of the [Commission](/usc/16/410cc–1.md?p=3) shall be effective on the date and in the manner which the [Commission](/usc/16/410cc–1.md?p=3) shall prescribe. For the purposes of its rules and regulations, the [Commission](/usc/16/410cc–1.md?p=3) may classify [persons](/usc/16/450rr–1.md?p=b) and matters within its jurisdiction and prescribe different requirements for different classes of [persons](/usc/16/450rr–1.md?p=b) or matters. All rules and regulations of the [Commission](/usc/16/410cc–1.md?p=3) shall be filed with its [secretary](/usc/16/410r–5.md?p=c-1) and shall be kept open in convenient form for public inspection and examination during reasonable business hours. # §825i. Appointment of officers and employees; compensation The [Commission](/usc/16/410cc–1.md?p=3) is authorized to appoint and fix the compensation of such officers, attorneys, examiners, and experts as may be necessary for carrying out its functions under this chapter; and the [Commission](/usc/16/410cc–1.md?p=3) may, subject to civil-service laws, appoint such other officers and employees as are necessary for carrying out such functions and fix their salaries in accordance with [chapter 51](/usc/16/ch51.md) and subchapter III of [chapter 53](/usc/5/chptIII-sptD-ch53.md) of title 5. # §825j. Investigations relating to electric energy; reports to Congress In order to secure information necessary or appropriate as a basis for recommending legislation, the [Commission](/usc/16/410cc–1.md?p=3) is authorized and directed to conduct investigations regarding the generation, transmission, distribution, and sale of electric energy, however produced, throughout the United States and its possessions, whether or not otherwise subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3), including the generation, transmission, distribution, and sale of electric energy by any agency, authority, or instrumentality of the United States, or of any [State](/usc/16/6456.md?p=2) or [municipality](/usc/16/2708.md?p=a-7) or other political [subdivision](/usc/16/539m–1.md?p=15) of a [State](/usc/16/6456.md?p=2). It shall, so far as practicable, secure and keep current information regarding the ownership, operation, management, and control of all facilities for such generation, transmission, distribution, and sale; the capacity and output thereof and the relationship between the two; the cost of generation, transmission, and distribution; the rates, charges, and contracts in respect of the sale of electric energy and its service to residential, rural, commercial, and industrial consumers and other purchasers by private and public agencies; and the relation of any or all such facts to the development of navigation, industry, commerce, and the national defense. The [Commission](/usc/16/410cc–1.md?p=3) shall report to Congress the results of investigations made under authority of this section. # §825k. Publication and sale of reports The [Commission](/usc/16/410cc–1.md?p=3) may provide for the publication of its reports and decisions in such form and manner as may be best adapted for public information and use, and is authorized to sell at reasonable prices copies of all [maps](/usc/16/430f–7.md?p=1), atlases, and reports as it may from time to time publish. Such reasonable prices may include the cost of compilation, composition, and reproduction. The [Commission](/usc/16/410cc–1.md?p=3) is also authorized to make such charges as it deems reasonable for special statistical services and other special or periodic services. The amounts collected under this section shall be deposited in the Treasury to the credit of miscellaneous receipts. All printing for the Federal Power [Commission](/usc/16/410cc–1.md?p=3) making use of engraving, lithography, and photolithography, together with the plates for the same, shall be contracted for and performed under the direction of the [Commission](/usc/16/410cc–1.md?p=3), under such limitations and conditions as the Joint [Committee](/usc/16/941b.md?p=1) on Printing may from time to time prescribe, and all other printing for the [Commission](/usc/16/410cc–1.md?p=3) shall be done by the Director of the Government Publishing Office under such limitations and conditions as the Joint [Committee](/usc/16/941b.md?p=1) on Printing may from time to time prescribe. The entire work may be done at, or ordered through, the Government Publishing Office whenever, in the judgment of the Joint [Committee](/usc/16/941b.md?p=1) on Printing, the same would be to the interest of the Government: Provided, That when the exigencies of the public service so require, the Joint [Committee](/usc/16/941b.md?p=1) on Printing may authorize the [Commission](/usc/16/410cc–1.md?p=3) to make immediate contracts for engraving, lithographing, and photolithographing, without advertisement for [proposals](/usc/16/7302.md?p=3): Provided further, That nothing contained in this chapter or any other Act shall prevent the Federal Power [Commission](/usc/16/410cc–1.md?p=3) from placing orders with other departments or establishments for engraving, lithographing, and photolithographing, in accordance with the provisions of sections [1535](/usc/31/1535.md) and [1536](/usc/31/1536.md) of title 31, providing for interdepartmental work. # §825l. Review of orders - (a) **Application for rehearing; time periods; modification of order—** Any [person](/usc/16/450rr–1.md?p=b), [electric utility](/usc/16/796.md?p=22-A), [State](/usc/16/6456.md?p=2), [municipality](/usc/16/2708.md?p=a-7), or [State commission](/usc/16/796.md?p=21) aggrieved by an order issued by the [Commission](/usc/16/410cc–1.md?p=3) in a proceeding under this chapter to which such [person](/usc/16/450rr–1.md?p=b), [electric utility](/usc/16/796.md?p=22-A), [State](/usc/16/6456.md?p=2), [municipality](/usc/16/2708.md?p=a-7), or [State commission](/usc/16/796.md?p=21) is a party may apply for a rehearing within thirty days after the issuance of such order. The application for rehearing shall set forth specifically the ground or grounds upon which such application is based. Upon such application the [Commission](/usc/16/410cc–1.md?p=3) shall have power to grant or deny rehearing or to abrogate or modify its order without further hearing. Unless the [Commission](/usc/16/410cc–1.md?p=3) acts upon the application for rehearing within thirty days after it is filed, such application may be deemed to have been denied. No proceeding to review any order of the [Commission](/usc/16/410cc–1.md?p=3) shall be brought by any entity unless such entity shall have made application to the [Commission](/usc/16/410cc–1.md?p=3) for a rehearing thereon. Until the record in a proceeding shall have been filed in a court of appeals, as provided in [subsection (b)](#b), the [Commission](/usc/16/410cc–1.md?p=3) may at any time, upon reasonable notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any finding or order made or issued by it under the provisions of this chapter. - (b) **Judicial review—** Any party to a proceeding under this chapter aggrieved by an order issued by the [Commission](/usc/16/410cc–1.md?p=3) in such proceeding may obtain a review of such order in the United States court of appeals for any circuit wherein the [licensee](/usc/16/796.md?p=5) or public utility to which the order relates is located or has its principal place of business, or in the United States Court of Appeals for the District of Columbia, by filing in such court, within sixty days after the order of the [Commission](/usc/16/410cc–1.md?p=3) upon the application for rehearing, a written petition praying that the order of the [Commission](/usc/16/410cc–1.md?p=3) be modified or set aside in whole or in part. A copy of such petition shall forthwith be transmitted by the clerk of the court to any member of the [Commission](/usc/16/410cc–1.md?p=3) and thereupon the [Commission](/usc/16/410cc–1.md?p=3) shall file with the court the record upon which the order complained of was entered, as provided in [section 2112 of title 28](/usc/28/2112.md). Upon the filing of such petition such court shall have jurisdiction, which upon the filing of the record with it shall be exclusive, to affirm, modify, or set aside such order in whole or in part. No objection to the order of the [Commission](/usc/16/410cc–1.md?p=3) shall be considered by the court unless such objection shall have been urged before the [Commission](/usc/16/410cc–1.md?p=3) in the application for rehearing unless there is reasonable ground for failure so to do. The finding of the [Commission](/usc/16/410cc–1.md?p=3) as to the facts, if supported by substantial evidence, shall be conclusive. If any party shall apply to the court for leave to adduce additional evidence, and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for failure to adduce such evidence in the proceedings before the [Commission](/usc/16/410cc–1.md?p=3), the court may order such additional evidence to be taken before the [Commission](/usc/16/410cc–1.md?p=3) and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. The [Commission](/usc/16/410cc–1.md?p=3) may modify its findings as to the facts by reason of the additional evidence so taken, and it shall file with the court such modified or new findings which, if supported by substantial evidence, shall be conclusive, and its recommendation, if any, for the modification or setting aside of the original order. The judgment and decree of the court, affirming, modifying, or setting aside, in whole or in part, any such order of the [Commission](/usc/16/410cc–1.md?p=3), shall be final, subject to review by the Supreme Court of the United States upon certiorari or certification as provided in [section 1254 of title 28](/usc/28/1254.md). - (c) **Stay of Commission’s order—** The filing of an application for rehearing under [subsection (a)](#a) shall not, unless specifically ordered by the [Commission](/usc/16/410cc–1.md?p=3), operate as a stay of the [Commission](/usc/16/410cc–1.md?p=3)’s order. The commencement of proceedings under [subsection (b)](#b) of this section shall not, unless specifically ordered by the court, operate as a stay of the [Commission](/usc/16/410cc–1.md?p=3)’s order. # §825m. Enforcement provisions - (a) **Enjoining and restraining violations—** Whenever it shall appear to the [Commission](/usc/16/410cc–1.md?p=3) that any [person](/usc/16/450rr–1.md?p=b) is engaged or about to engage in any acts or practices which constitute or will constitute a [violation](/usc/16/620e.md?p=11) of the provisions of this chapter, or of any rule, regulation, or order thereunder, it may in its discretion bring an action in the proper District Court of the United States or the United States courts of any Territory or other place subject to the jurisdiction of the United States, to enjoin such acts or practices and to enforce compliance with this chapter or any rule, regulation, or order thereunder, and upon a proper showing a permanent or temporary injunction or decree or restraining order shall be granted without bond. The [Commission](/usc/16/410cc–1.md?p=3) may transmit such evidence as may be available concerning such acts or practices to the Attorney General, who, in his discretion, may [institute](/usc/16/6703.md?p=4) the necessary criminal proceedings under this chapter. - (b) **Writs of mandamus—** Upon application of the [Commission](/usc/16/410cc–1.md?p=3) the district courts of the United States and the United States courts of any Territory or other place subject to the jurisdiction of the United States shall have jurisdiction to issue writs of mandamus commanding any [person](/usc/16/450rr–1.md?p=b) to comply with the provisions of this chapter or any rule, regulation, or order of the [Commission](/usc/16/410cc–1.md?p=3) thereunder. - (c) **Employment of attorneys—** The [Commission](/usc/16/410cc–1.md?p=3) may employ such attorneys as it finds necessary for proper legal aid and service of the [Commission](/usc/16/410cc–1.md?p=3) or its members in the conduct of their work, or for proper representation of the public interests in investigations made by it or cases or proceedings pending before it, whether at the [Commission](/usc/16/410cc–1.md?p=3)’s own instance or upon complaint, or to appear for or represent the [Commission](/usc/16/410cc–1.md?p=3) in any case in court; and the expenses of such employment shall be paid out of the appropriation for the [Commission](/usc/16/410cc–1.md?p=3). - (d) **Prohibitions on violators—** In any proceedings under [subsection (a)](#a), the court may prohibit, conditionally or unconditionally, and permanently or for such period of time as the court determines, any individual who is engaged or has engaged in practices constituting a [violation](/usc/16/620e.md?p=11) of [section 824u of this title](/usc/16/824u.md) (and related rules and regulations) from— - (1) acting as an officer or director of an [electric utility](/usc/16/796.md?p=22-A); or - (2) engaging in the business of purchasing or selling— - (A) electric energy; or - (B) transmission services subject to the jurisdiction of the [Commission](/usc/16/410cc–1.md?p=3). # §825n. Forfeiture for violations; recovery; applicability - (a) **Forfeiture—** Any [licensee](/usc/16/796.md?p=5) or public utility which willfully fails, within the time prescribed by the [Commission](/usc/16/410cc–1.md?p=3), to comply with any order of the [Commission](/usc/16/410cc–1.md?p=3), to file any report required under this chapter or any rule or regulation of the [Commission](/usc/16/410cc–1.md?p=3) thereunder, to submit any information or document required by the [Commission](/usc/16/410cc–1.md?p=3) in the course of an investigation conducted under this chapter, or to appear by an officer or agent at any hearing or investigation in response to a subpena issued under this chapter, shall forfeit to the United States an amount not exceeding $1,000 to be fixed by the [Commission](/usc/16/410cc–1.md?p=3) after notice and opportunity for hearing. The imposition or payment of any such forfeiture shall not bar or affect any penalty prescribed in this chapter but such forfeiture shall be in [addition](/usc/16/410r–5.md?p=c-2) to any such penalty. - (b) **Recovery—** The forfeitures provided for in this chapter shall be payable into the Treasury of the United States and shall be recoverable in a civil suit in the name of the United States, brought in the district where the [person](/usc/16/450rr–1.md?p=b) is an inhabitant or has his principal place of business, or if a [licensee](/usc/16/796.md?p=5) or public utility, in any district in which such [licensee](/usc/16/796.md?p=5) or public utility transacts business. It shall be the duty of the various United States attorneys, under the direction of the Attorney General of the United States, to prosecute for the recovery of forfeitures under this chapter. The costs and expenses of such prosecution shall be paid from the appropriations for the expenses of the courts of the United States. - (c) **Applicability—** This section shall not apply in the case of any provision of section [824j](/usc/16/824j.md), [824k](/usc/16/824k.md), [824l](/usc/16/824l.md), or [824m](/usc/16/824m.md) of this title or any rule or order issued under any such provision. # §825o. Penalties for violations; applicability of section - (a) **Statutory violations—** Any [person](/usc/16/450rr–1.md?p=b) who willfully and knowingly does or causes or suffers to be done any act, matter, or thing in this chapter prohibited or declared to be unlawful, or who willfully and knowingly omits or fails to do any act, matter, or thing in this chapter required to be done, or willfully and knowingly causes or suffers such omission or failure, shall, upon conviction thereof, be punished by a fine of not more than $1,000,000 or by imprisonment for not more than 5 years, or both. - (b) **Rules violations—** Any [person](/usc/16/450rr–1.md?p=b) who willfully and knowingly violates any rule, regulation, restriction, condition, or order made or imposed by the [Commission](/usc/16/410cc–1.md?p=3) under authority of this chapter, or any rule or regulation imposed by the [Secretary](/usc/16/410r–5.md?p=c-1) of the Army under authority of subchapter I of this chapter shall, in [addition](/usc/16/410r–5.md?p=c-2) to any other penalties provided by law, be punished upon conviction thereof by a fine of not exceeding $25,000 for each and every day during which such offense occurs. # §825o–1. Enforcement of certain provisions - (a) **Violations—** It shall be unlawful for any [person](/usc/16/450rr–1.md?p=b) to violate any provision of subchapter II or any rule or order issued under any such provision. - (b) **Civil penalties—** Any [person](/usc/16/450rr–1.md?p=b) who violates any provision of subchapter II or any provision of any rule or order thereunder shall be subject to a civil penalty of not more than $1,000,000 for each day that such [violation](/usc/16/620e.md?p=11) continues. Such penalty shall be assessed by the [Commission](/usc/16/410cc–1.md?p=3), after notice and opportunity for public hearing, in accordance with the same provisions as are applicable under [section 823b(d) of this title](/usc/16/823b.md?p=d) in the case of civil penalties assessed under [section 823b of this title](/usc/16/823b.md). In determining the amount of a proposed penalty, the [Commission](/usc/16/410cc–1.md?p=3) shall take into consideration the seriousness of the [violation](/usc/16/620e.md?p=11) and the efforts of such [person](/usc/16/450rr–1.md?p=b) to remedy the [violation](/usc/16/620e.md?p=11) in a timely manner. # §825p. Jurisdiction of offenses; enforcement of liabilities and duties The District Courts of the United States, and the United States courts of any Territory or other place subject to the jurisdiction of the United States shall have exclusive jurisdiction of [violations](/usc/16/620e.md?p=11) of this chapter or the rules, regulations, and orders thereunder, and of all suits in equity and actions at law brought to enforce any liability or duty created by, or to enjoin any [violation](/usc/16/620e.md?p=11) of this chapter or any rule, regulation, or order thereunder. Any criminal proceeding shall be brought in the district wherein any act or transaction constituting the [violation](/usc/16/620e.md?p=11) occurred. Any suit or action to enforce any liability or duty created by, or to enjoin any [violation](/usc/16/620e.md?p=11) of, this chapter or any rule, regulation, or order thereunder may be brought in any such district or in the district wherein the defendant is an inhabitant, and process in such cases may be served wherever the defendant may be found. Judgments and decrees so rendered shall be subject to review as provided in sections [1254](/usc/28/1254.md), [1291](/usc/28/1291.md), and [1292](/usc/28/1292.md) of title 28. No costs shall be assessed against the [Commission](/usc/16/410cc–1.md?p=3) in any judicial proceeding by or against the [Commission](/usc/16/410cc–1.md?p=3) under this chapter. # [§825q. Repealed. Pub. L. 109–58, title XII, § 1277(a), Aug. 8, 2005, 119 Stat. 978 — repealed] # §825q–1. Office of Public Participation - (a) - (1) There shall be an office in the [Commission](/usc/16/410cc–1.md?p=3) to be known as the Office of Public Participation (hereinafter in this section referred to as the “Office”). - (2) - (A) The Office shall be administered by a Director. The Director shall be appointed by the Chairman with the approval of the [Commission](/usc/16/410cc–1.md?p=3). - (B) The Director shall be responsible for the discharge of the functions and duties of the Office. The Director shall be compensated at a rate of pay not greater than the maximum rate of pay prescribed for a senior executive in the Senior Executive Service under [section 5382 of title 5](/usc/5/5382.md). - (3) The Director may appoint, and assign the duties of, employees of such Office, and with the concurrence of the [Commission](/usc/16/410cc–1.md?p=3) he may fix the compensation of such employees and procure temporary and intermittent services to the same extent as is authorized under [section 3109 of title 5](/usc/5/3109.md). - (b) - (1) The Director shall coordinate assistance to the public with respect to authorities exercised by the [Commission](/usc/16/410cc–1.md?p=3). The Director shall also coordinate assistance available to [persons](/usc/16/450rr–1.md?p=b) intervening or participating or proposing to intervene or participate in proceedings before the [Commission](/usc/16/410cc–1.md?p=3). - (2) The [Commission](/usc/16/410cc–1.md?p=3) may, under rules promulgated by it, provide compensation for reasonable attorney’s fees, expert witness fees, and other costs of intervening or participating in any proceeding before the [Commission](/usc/16/410cc–1.md?p=3) to any [person](/usc/16/450rr–1.md?p=b) whose intervention or participation substantially contributed to the approval, in whole or in part, of a position advocated by such [person](/usc/16/450rr–1.md?p=b). Such compensation may be paid only if the [Commission](/usc/16/410cc–1.md?p=3) has determined that— - (A) the proceeding is significant, and - (B) such [person](/usc/16/450rr–1.md?p=b)’s intervention or participation in such proceeding without receipt of compensation constitutes a significant financial hardship to him. - (3) Nothing in this subsection affects or restricts any rights of any intervenor or participant under any other applicable law or rule of law. # §825r. Separability If any provision of this chapter, or the application of such provision to any [person](/usc/16/450rr–1.md?p=b) or circumstance, shall be held invalid, the remainder of the chapter, and the application of such provision to [persons](/usc/16/450rr–1.md?p=b) or circumstances other than those as to which it is held invalid, shall not be affected thereby.