--- kind: "section" citation: "16 U.S.C. § 832c" title: "16" title_heading: "Conservation" number: "832c" heading: "Distribution of electricity; preference to public bodies and cooperatives" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/16/832c" units: - "Chapter 12B — Bonneville Project" --- # §832c. Distribution of electricity; preference to public bodies and cooperatives - (a) **General provisions—** In order to insure that the facilities for the generation of electric energy at the Bonneville [project](/usc/16/410r–5.md?p=c-4) shall be operated for the benefit of the general public, and particularly of domestic and rural consumers, the [administrator](/usc/16/450rr–1.md?p=a) shall at all times, in disposing of electric energy generated at said [project](/usc/16/410r–5.md?p=c-4), give preference and priority to public bodies and cooperatives. - (b) **Prior to January 1, 1942; subsequent thereto—** To [preserve](/usc/16/698u–1.md?p=2) and protect the preferential rights and priorities of public bodies and cooperatives as provided in section[^1] (a) and to effectuate the intent and purpose of this chapter that at all times up to January 1, 1942, there shall be available for sale to public bodies and cooperatives not less than 50 per centum of the electric energy produced at the Bonneville [project](/usc/16/410r–5.md?p=c-4), it shall be the duty of the [administrator](/usc/16/450rr–1.md?p=a) in making contracts for the sale of such energy to so arrange such contracts as to make such 50 per centum of such energy available to said public bodies and cooperatives until January 1, 1942: Provided, That the electric energy so reserved for but not actually purchased by and delivered to such public bodies and cooperatives prior to January 1, 1942, may be disposed of temporarily so long as such temporary disposition will not interfere with the purchase by and delivery to such public bodies and cooperatives at any time prior to January 1, 1942: Provided further, That nothing herein contained shall be construed to limit or impair the preferential and priority rights of such public bodies or cooperatives after January 1, 1942; and in the event that after such date there shall be conflicting or competing applications for an allocation of electric energy between any public body or cooperative on the one hand and a private agency of any character on the other, the application of such public body or cooperative shall be granted. - (c) **Allowance of time for financing—** An application by any public body or cooperative for an allocation of electric energy shall not be denied, or another application competing or in conflict therewith be granted, to any private corporation, company, agency, or [person](/usc/16/450rr–1.md?p=b), on the ground that any proposed bond or other security issue of any such public body or cooperative, the sale of which is necessary to enable such prospective purchaser to enter into the public business of selling and distributing the electric energy proposed to be purchased, has not been authorized or marketed, until after a reasonable time, to be determined by the [administrator](/usc/16/450rr–1.md?p=a), has been afforded such public body or cooperative to have such bond or other security issue authorized or marketed. - (d) **Congressional declaration of policy; allowance of time for creation and organization—** It is declared to be the policy of the Congress, as expressed in this chapter, to [preserve](/usc/16/698u–1.md?p=2) the said preferential status of the public bodies and cooperatives herein referred to, and to give to the people of the [States](/usc/16/544.md?p=r) within economic transmission distance of the Bonneville [project](/usc/16/410r–5.md?p=c-4) reasonable opportunity and time to hold any election or elections or [take](/usc/16/3102.md?p=18) any action necessary to create such public bodies and cooperatives as the laws of such [States](/usc/16/544.md?p=r) authorize and permit, and to afford such public bodies or cooperatives reasonable time and opportunity to [take](/usc/16/3102.md?p=18) any action necessary to authorize the issuance of bonds or to arrange other financing necessary to construct or [acquire](/usc/16/620e.md?p=1) necessary and desirable electric distribution facilities, and in all other respects legally to become qualified purchasers and distributors of electric energy available under this chapter. ## Footnotes [^1]: So in original. Probably should be “subsection”. ## Source credit (Aug. 20, 1937, ch. 720, § 4, 50 Stat. 733; Mar. 6, 1940, ch. 47, § 3, 54 Stat. 47.) ## Notes ### Editorial Notes ### Amendments 1940—Subsec. (b). Act Mar. 6, 1940, substituted “January 1, 1942” for “January 1, 1941” wherever appearing. ### Statutory Notes and Related Subsidiaries ### Transfer of Functions Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by section 7152(a)(1)(D), (2) of Title 42, The Public Health and Welfare, with Bonneville Power Administration to be preserved as a distinct organizational entity within Department of Energy and headed by an Administrator.