---
kind: "section"
citation: "16 U.S.C. § 839d"
title: "16"
title_heading: "Conservation"
number: "839d"
heading: "Conservation and resource acquisition"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/839d"
units:
  - "Chapter 12H — Pacific Northwest Electric Power Planning and Conservation"
---

# §839d. Conservation and resource acquisition

- (a) **Conservation measures; resources—**
  - (1) The [Administrator](/usc/16/839a.md?p=2) shall [acquire](/usc/16/620e.md?p=1) such [resources](/usc/16/839a.md?p=19) through [conservation](/usc/16/839a.md?p=3), implement all such [conservation](/usc/16/839a.md?p=3) measures, and [acquire](/usc/16/620e.md?p=1) such [renewable resources](/usc/16/839a.md?p=16) which are installed by a residential or small commercial [consumer](/usc/16/839a.md?p=5) to reduce load, as the [Administrator](/usc/16/839a.md?p=2) determines are consistent with the plan, or if no plan is in effect with the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2) and, in the case of [major resources](/usc/16/839a.md?p=12), in accordance with [subsection (c)](#c) of this section. Such [conservation](/usc/16/839a.md?p=3) measures and such [resources](/usc/16/839a.md?p=19) may include, but are not limited to—
    - (A) loans and grants to [consumers](/usc/16/839a.md?p=5) for insulation or weatherization, increased system efficiency, and waste energy recovery by direct application,
    - (B) technical and financial assistance to, and other cooperation with, the [Administrator](/usc/16/839a.md?p=2)’s [customers](/usc/16/839a.md?p=7) and governmental authorities to encourage maximum cost-effective voluntary [conservation](/usc/16/839a.md?p=3) and the attainment of any cost-effective [conservation](/usc/16/839a.md?p=3) objectives adopted by individual [States](/usc/16/544.md?p=r) or [subdivisions](/usc/16/539m–1.md?p=15) thereof,
    - (C) aiding the [Administrator](/usc/16/839a.md?p=2)’s [customers](/usc/16/839a.md?p=7) and governmental authorities in implementing model [conservation](/usc/16/839a.md?p=3) standards adopted pursuant to [section 839b(f) of this title](/usc/16/839b.md?p=f), and
    - (D) conducting demonstration [projects](/usc/16/410r–5.md?p=c-4) to determine the cost effectiveness of [conservation](/usc/16/839a.md?p=3) measures and direct application of renewable energy [resources](/usc/16/839a.md?p=19).
  - (2) In [addition](/usc/16/410r–5.md?p=c-2) to acquiring [electric power](/usc/16/839a.md?p=9) pursuant to [section 839c(c) of this title](/usc/16/839c.md?p=c), or on a short-term basis pursuant to section 11(b)(6)(i) of the Federal Columbia River Transmission System Act [[16 U.S.C. 838i(b)(6)(i)](/usc/16/838i.md)], the [Administrator](/usc/16/839a.md?p=2) shall [acquire](/usc/16/620e.md?p=1), in accordance with this section, sufficient [resources](/usc/16/839a.md?p=19)—
    - (A) to meet his contractual obligations that remain after [taking](/usc/16/3102.md?p=18) into account planned savings from measures provided for in paragraph (1) of this subsection, and
    - (B) to assist in meeting the requirements of [section 839b(h) of this title](/usc/16/839b.md?p=h).

    The [Administrator](/usc/16/839a.md?p=2) shall [acquire](/usc/16/620e.md?p=1) such [resources](/usc/16/839a.md?p=19) without considering restrictions which may apply pursuant to [section 839c(b) of this title](/usc/16/839c.md?p=b).

- (b) **Acquisition of resources—**
  - (1) Except as specifically provided in this section, [acquisition](/usc/16/620e.md?p=1) of [resources](/usc/16/839a.md?p=19) under this chapter shall be consistent with the plan, as determined by the [Administrator](/usc/16/839a.md?p=2).
  - (2) The [Administrator](/usc/16/839a.md?p=2) may [acquire](/usc/16/620e.md?p=1) [resources](/usc/16/839a.md?p=19) (other than [major resources](/usc/16/839a.md?p=12)) under this chapter which are not consistent with the plan, but which are determined by the [Administrator](/usc/16/839a.md?p=2) to be consistent with the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2).
  - (3) If no plan is in effect, the [Administrator](/usc/16/839a.md?p=2) may [acquire](/usc/16/620e.md?p=1) [resources](/usc/16/839a.md?p=19) under this chapter which are determined by the [Administrator](/usc/16/839a.md?p=2) to be consistent with the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2).
  - (4) The [Administrator](/usc/16/839a.md?p=2) shall [acquire](/usc/16/620e.md?p=1) any non-Federal [resources](/usc/16/839a.md?p=19) to replace [Federal base system resources](/usc/16/839a.md?p=10) only in accordance with the provisions of this section. The [Administrator](/usc/16/839a.md?p=2) shall include in the contracts for the [acquisition](/usc/16/620e.md?p=1) of any such non-Federal replacement [resources](/usc/16/839a.md?p=19) provisions which will enable him to ensure that such non-Federal replacement [resources](/usc/16/839a.md?p=19) are developed and operated in a manner consistent with the considerations specified in [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2).
  - (5) Notwithstanding any [acquisition](/usc/16/620e.md?p=1) of [resources](/usc/16/839a.md?p=19) pursuant to this section, the [Administrator](/usc/16/839a.md?p=2) shall not reduce his efforts to achieve [conservation](/usc/16/839a.md?p=3) and to [acquire](/usc/16/620e.md?p=1) [renewable resources](/usc/16/839a.md?p=16) installed by a residential or small commercial [consumer](/usc/16/839a.md?p=5) to reduce load, pursuant to [subsection (a)(1)](#a-1) of this section.
- (c) **Procedure for acquiring major resources, implementing conservation measures, paying or reimbursing investigation and preconstruction expenses, or granting billing credits—**
  - (1) For each proposal under subsection [(a)](#a), [(b)](#b), [(f)](#f), [(h)](#h), or [(l)](#l) of this section to [acquire](/usc/16/620e.md?p=1) a [major resource](/usc/16/839a.md?p=12), to implement a [conservation](/usc/16/839a.md?p=3) measure which will conserve an amount of [electric power](/usc/16/839a.md?p=9) equivalent to that of a [major resource](/usc/16/839a.md?p=12), to pay or reimburse investigation and preconstruction expenses of the sponsors of a [major resource](/usc/16/839a.md?p=12), or to grant billing credits or services involving a [major resource](/usc/16/839a.md?p=12), the [Administrator](/usc/16/839a.md?p=2) shall—
    - (A) publish notice of the proposed action in the Federal Register and provide a copy of such notice to the [Council](/usc/16/839a.md?p=6), the Governor of each [State](/usc/16/590q.md?p=a) in which facilities would be constructed or a [conservation](/usc/16/839a.md?p=3) measure implemented, and the [Administrator](/usc/16/839a.md?p=2)’s [customers](/usc/16/839a.md?p=7);
    - (B) not less than sixty days following publication of such notice, conduct one or more public hearings, presided over by a hearing officer, at which testimony and evidence shall be received, with opportunity for such rebuttal and cross-examination as the hearing officer deems appropriate in the development of an adequate hearing record;
    - (C) develop a record to assist in evaluating the proposal which shall include the transcript of the public hearings, together with exhibits, and such other materials and information as may have been submitted to, or developed by, the [Administrator](/usc/16/839a.md?p=2); and
    - (D) following completion of such hearings, promptly provide to the [Council](/usc/16/839a.md?p=6) and make public a written decision that includes, in [addition](/usc/16/410r–5.md?p=c-2) to a determination respecting the requirements of subsection [(a)](#a), [(b)](#b), [(f)](#f), [(h)](#h), [(l)](#l), or [(m)](#m) of this section, as appropriate—
      - (i) if a plan is in effect, a finding that the proposal is either consistent or inconsistent with the plan or, notwithstanding its inconsistency with the plan, a finding that it is needed to meet the [Administrator](/usc/16/839a.md?p=2)’s obligations under this chapter, or
      - (ii) if no plan is in effect, a finding that the proposal is either consistent or inconsistent with the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2) or notwithstanding its inconsistency, a finding that it is needed to meet the [Administrator](/usc/16/839a.md?p=2)’s obligations under this chapter.

      In the case of [subsection (f)](#f) of this section, such decision shall be treated as satisfying the applicable requirements of this subsection and of [subsection (f)](#f) of this section, if it includes a finding of probable consistency, based upon the [Administrator](/usc/16/839a.md?p=2)’s evaluation of information available at the time of completion of the hearing under this paragraph. Such decision shall include the reasons for such finding.

  - (2) Within sixty days of the receipt of the [Administrator](/usc/16/839a.md?p=2)’s decision pursuant to paragraph (1)(D) of this subsection, the [Council](/usc/16/839a.md?p=6) may determine by a majority vote of all members of the [Council](/usc/16/839a.md?p=6), and notify the [Administrator](/usc/16/839a.md?p=2)—
    - (A) that the proposal is either consistent or inconsistent with the plan, or
    - (B) if no plan is in effect, that the proposal is either consistent or inconsistent with the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2).
  - (3) The [Administrator](/usc/16/839a.md?p=2) may not implement any proposal referred to in [paragraph (1)](#c-1) that is determined pursuant to paragraph [(1)](#c-1) or [(2)](#c-2) by either the [Administrator](/usc/16/839a.md?p=2) or the [Council](/usc/16/839a.md?p=6) to be inconsistent with the plan or, if no plan is in effect, with the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2)—
    - (A) unless the [Administrator](/usc/16/839a.md?p=2) finds that, notwithstanding such inconsistency, such [resource](/usc/16/839a.md?p=19) is needed to meet the [Administrator](/usc/16/839a.md?p=2)’s obligations under this chapter, and
    - (B) until the expenditure of funds for that purpose has been specifically authorized by Act of Congress enacted after December 5, 1980.
  - (4) Before the [Administrator](/usc/16/839a.md?p=2) implements any proposal referred to in paragraph (1) of this subsection, the [Administrator](/usc/16/839a.md?p=2) shall—
    - (A) submit to the appropriate committees of the Congress the administrative record of the decision (including any determination by the [Council](/usc/16/839a.md?p=6) under [paragraph (2)](#c-2)) and a statement of the procedures followed or to be followed for compliance with the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](/usc/42/4321.md) et seq.],
    - (B) publish notice of the decision in the Federal Register, and
    - (C) note the proposal in the [Administrator](/usc/16/839a.md?p=2)’s annual or supplementary budget submittal made pursuant to the Federal Columbia River Transmission System Act ([16 U.S.C. 838](/usc/16/838.md) and following).

    The [Administrator](/usc/16/839a.md?p=2) may not implement any such proposal until ninety days after the date on which such proposal has been noted in such budget or after the date on which such decision has been published in the Federal Register, whichever is later.

  - (5) The authority of the [Council](/usc/16/839a.md?p=6) to make a determination under [paragraph (2)(B)](#c-2-B) if no plan is in effect shall expire on the date two years after the establishment of the [Council](/usc/16/839a.md?p=6).
- (d) **Acquisition of resources other than major resources—** The [Administrator](/usc/16/839a.md?p=2) is authorized to [acquire](/usc/16/620e.md?p=1) a [resource](/usc/16/839a.md?p=19), other than a [major resource](/usc/16/839a.md?p=12), whether or not such [resource](/usc/16/839a.md?p=19) meets the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2) but which he determines is an experimental, developmental, demonstration, or pilot [project](/usc/16/410r–5.md?p=c-4) of a type with a potential for providing cost-effective service to the region. The [Administrator](/usc/16/839a.md?p=2) shall make no obligation for the [acquisition](/usc/16/620e.md?p=1) of such [resource](/usc/16/839a.md?p=19) until it is included in the annual budgets submitted to the Congress pursuant to the Federal Columbia River Transmission System Act [[16 U.S.C. 838](/usc/16/838.md) et seq.].
- (e) **Effectuation of priorities; use of customers and local entities—**
  - (1) In order to effectuate the priority given to [conservation](/usc/16/839a.md?p=3) measures and [renewable resources](/usc/16/839a.md?p=16) under this chapter, the [Administrator](/usc/16/839a.md?p=2) shall, to the maximum extent practicable, make use of his authorities under this chapter to [acquire](/usc/16/620e.md?p=1) [conservation](/usc/16/839a.md?p=3) measures and [renewable resources](/usc/16/839a.md?p=16), to implement [conservation](/usc/16/839a.md?p=3) measures, and to provide credits and technical and financial assistance for the development and implementation of such [resources](/usc/16/839a.md?p=19) and measures (including the funding of, and the securing of debt for, expenses incurred during the investigation and preconstruction of [resources](/usc/16/839a.md?p=19), as authorized in [subsection (f)](#f) of this section).
  - (2) To the extent [conservation](/usc/16/839a.md?p=3) measures or [acquisition](/usc/16/620e.md?p=1) of [resources](/usc/16/839a.md?p=19) require direct arrangements with [consumers](/usc/16/839a.md?p=5), the [Administrator](/usc/16/839a.md?p=2) shall make maximum practicable use of [customers](/usc/16/839a.md?p=7) and local entities capable of administering and carrying out such arrangements.
- (f) **Agreements; investigation and initial development of renewable resources other than major resources; reimbursement of investigation and preconstruction expenses—**
  - (1) For [resources](/usc/16/839a.md?p=19) which the [Administrator](/usc/16/839a.md?p=2) determines may be eligible for [acquisition](/usc/16/620e.md?p=1) under this section and satisfy the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2) or, if a plan is in effect, to be consistent with the plan, the [Administrator](/usc/16/839a.md?p=2) is authorized to enter into agreements with sponsors of—
    - (A) a [renewable resource](/usc/16/839a.md?p=16), other than a [major resource](/usc/16/839a.md?p=12), to fund or secure debt incurred in the investigation and initial development of such [resource](/usc/16/839a.md?p=19), or
    - (B) any other [resource](/usc/16/839a.md?p=19) to provide for the reimbursement of the sponsor’s investigation and preconstruction expenses concerning such [resource](/usc/16/839a.md?p=19) (which expenses shall not include procurement of capital equipment or construction material for such [resource](/usc/16/839a.md?p=19)).

    In the case of any [resource](/usc/16/839a.md?p=19) referred to in subparagraph (B) of this paragraph, such reimbursement is authorized only if—

    - (i) such [resource](/usc/16/839a.md?p=19) is subsequently denied [State](/usc/16/590q.md?p=a) siting approval or other necessary Federal or [State](/usc/16/590q.md?p=a) permits, or approvals,
    - (ii) such investigation subsequently demonstrates, as determined by the [Administrator](/usc/16/839a.md?p=2), that such [resource](/usc/16/839a.md?p=19) does not meet the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2) or is not acceptable because of environmental impacts, or
    - (iii) after such investigation the [Administrator](/usc/16/839a.md?p=2) determines not to [acquire](/usc/16/620e.md?p=1) the [resource](/usc/16/839a.md?p=19) and the sponsor determines not to construct the [resource](/usc/16/839a.md?p=19).
  - (2) The [Administrator](/usc/16/839a.md?p=2) may exercise the authority of this subsection only after he determines that the failure to do so would result in inequitable hardship to the [consumers](/usc/16/839a.md?p=5) of such sponsors. The [Administrator](/usc/16/839a.md?p=2) may provide reimbursement under this subsection only for expenses incurred after December 5, 1980.
  - (3) Any agreement under paragraph (1) of this subsection shall provide the [Administrator](/usc/16/839a.md?p=2) an option to [acquire](/usc/16/620e.md?p=1) any such [resource](/usc/16/839a.md?p=19), including a [renewable resource](/usc/16/839a.md?p=16), and shall include such other provisions, as the [Administrator](/usc/16/839a.md?p=2) deems appropriate, for the [Administrator](/usc/16/839a.md?p=2)’s recovery from such sponsors or any assignee of the sponsors, if such sponsor or assignee continues development of the [resource](/usc/16/839a.md?p=19), of any advances made by the [Administrator](/usc/16/839a.md?p=2) pursuant to such agreement.
  - (4) The [Administrator](/usc/16/839a.md?p=2) shall not reimburse any expense incurred by the sponsors (except necessary expenses involved in the liquidation of the [resource](/usc/16/839a.md?p=19)) after the date of a final denial of application for [State](/usc/16/590q.md?p=a) siting approval or after the date the [Administrator](/usc/16/839a.md?p=2) determines that the [resource](/usc/16/839a.md?p=19) to be inconsistent with the plan or the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2).
- (g) **Environmental impact statements—** At the request of the appropriate [State](/usc/16/590q.md?p=a), any environmental impact statement which may be required with respect to a [resource](/usc/16/839a.md?p=19), to the extent determined possible by the [Administrator](/usc/16/839a.md?p=2) in accordance with applicable law and regulations, may be prepared jointly and in coordination with any required environmental impact statement of the [State](/usc/16/590q.md?p=a) or any other statement which serves the purpose of an environmental impact statement which is required by [State](/usc/16/590q.md?p=a) law.
- (h) **Billing credits—**
  - (1) If a [customer](/usc/16/839a.md?p=7) so requests, the [Administrator](/usc/16/839a.md?p=2) shall grant billing credits to such [customer](/usc/16/839a.md?p=7), and provide services to such [customer](/usc/16/839a.md?p=7) at rates established for such services, for—
    - (A) [conservation](/usc/16/839a.md?p=3) activities independently undertaken or continued after December 5, 1980, by such [customer](/usc/16/839a.md?p=7) or political [subdivision](/usc/16/539m–1.md?p=15) served by such [customer](/usc/16/839a.md?p=7) which reduce the obligation of the [Administrator](/usc/16/839a.md?p=2) that would otherwise have existed to [acquire](/usc/16/620e.md?p=1) other [resources](/usc/16/839a.md?p=19) under this chapter, or
    - (B) [resources](/usc/16/839a.md?p=19) constructed, completed, or acquired after December 5, 1980, by a [customer](/usc/16/839a.md?p=7), an entity acting on behalf of such [customer](/usc/16/839a.md?p=7), or political [subdivision](/usc/16/539m–1.md?p=15) served by the [customer](/usc/16/839a.md?p=7) which reduce the obligation of the [Administrator](/usc/16/839a.md?p=2) to [acquire](/usc/16/620e.md?p=1) [resources](/usc/16/839a.md?p=19) under this chapter. Such [resources](/usc/16/839a.md?p=19) shall be [renewable resources](/usc/16/839a.md?p=16) or multipurpose [projects](/usc/16/410r–5.md?p=c-4) or other [resources](/usc/16/839a.md?p=19) which are not inconsistent with the plan or, in the absence of a plan, not inconsistent with the criteria of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2).
  - (2) The energy and capacity on which a credit under this subsection to a [customer](/usc/16/839a.md?p=7) is based shall be the amount by which a [conservation](/usc/16/839a.md?p=3) activity or [resource](/usc/16/839a.md?p=19) actually changes the [customer](/usc/16/839a.md?p=7)’s net requirement for supply of [electric power](/usc/16/839a.md?p=9) or [reserves](/usc/16/839a.md?p=17) from the [Administrator](/usc/16/839a.md?p=2).
  - (3) The amount of credits for [conservation](/usc/16/839a.md?p=3) under this subsection shall be set to credit the [customer](/usc/16/839a.md?p=7) implementing or continuing the [conservation](/usc/16/839a.md?p=3) activity for which the credit is granted for the savings resulting from such activity. The rate impact on the [Administrator](/usc/16/839a.md?p=2)’s other [customers](/usc/16/839a.md?p=7) of granting the credit shall be equal to the rate impact such [customers](/usc/16/839a.md?p=7) would have experienced had the [Administrator](/usc/16/839a.md?p=2) been obligated to [acquire](/usc/16/620e.md?p=1) [resources](/usc/16/839a.md?p=19) in an amount equal to that actually saved by the activity for which the credit is granted.
  - (4) For [resources](/usc/16/839a.md?p=19) other than [conservation](/usc/16/839a.md?p=3), the [customer](/usc/16/839a.md?p=7) shall be credited for net costs actually incurred by such [customer](/usc/16/839a.md?p=7), an entity acting on behalf of such [customer](/usc/16/839a.md?p=7), or political [subdivision](/usc/16/539m–1.md?p=15) served by such [customer](/usc/16/839a.md?p=7), in acquiring, constructing, or operating the [resource](/usc/16/839a.md?p=19) for which the credit is granted. The rate impact to the [Administrator](/usc/16/839a.md?p=2)’s other [customers](/usc/16/839a.md?p=7) of granting the credit shall be no greater than the rate impact such [customers](/usc/16/839a.md?p=7) would have experienced had the [Administrator](/usc/16/839a.md?p=2) been obligated to [acquire](/usc/16/620e.md?p=1) [resources](/usc/16/839a.md?p=19) in an amount equal to that actually produced by the [resource](/usc/16/839a.md?p=19) for which the credit is granted.
  - (5) Retail rate structures which are voluntarily implemented by the [Administrator](/usc/16/839a.md?p=2)’s [customers](/usc/16/839a.md?p=7) and which induce [conservation](/usc/16/839a.md?p=3) or installation of [consumer](/usc/16/839a.md?p=5)-owned [renewable resources](/usc/16/839a.md?p=16) shall be considered, for purposes of this subsection, to be (A) [conservation](/usc/16/839a.md?p=3) activities independently undertaken or carried on by such [customers](/usc/16/839a.md?p=7), or (B) [customer](/usc/16/839a.md?p=7)-owned [renewable resources](/usc/16/839a.md?p=16), and shall qualify for billing credits upon the same showing as that required for other [conservation](/usc/16/839a.md?p=3) or [renewable resource](/usc/16/839a.md?p=16) activities.
  - (6) Prior to granting any credit or providing services pursuant to this subsection, the [Administrator](/usc/16/839a.md?p=2) shall—
    - (A) comply with the notice provisions of [subsection (c)](#c) of this section, and include in such notice the methodology the [Administrator](/usc/16/839a.md?p=2) proposes to use in determining the amount of any such credit;
    - (B) include the cost of such credit in the [Administrator](/usc/16/839a.md?p=2)’s annual or amended budget submittal to the Congress made pursuant to the Federal Columbia River Transmission System Act ([16 U.S.C. 838(j)](/usc/16/838.md)) [[16 U.S.C. 838](/usc/16/838.md) et seq.];
    - (C) require that [resources](/usc/16/839a.md?p=19) in excess of [customer](/usc/16/839a.md?p=7)’s reasonable load growth shall have been offered to others for ownership, participation or other sponsorship pursuant to [subsection (m)](#m) of this section, except in the case of [conservation](/usc/16/839a.md?p=3), multi-purpose [projects](/usc/16/410r–5.md?p=c-4) uniquely suitable for development by the [customer](/usc/16/839a.md?p=7), or [renewable resources](/usc/16/839a.md?p=16); and
    - (D) require that the operators of any generating [resource](/usc/16/839a.md?p=19) for which a billing credit is to be granted agree to operate such [resource](/usc/16/839a.md?p=19) in a manner compatible with the planning and operation of the region’s power system.
- (i) **Contracts—** Contracts for the [acquisition](/usc/16/620e.md?p=1) of [resources](/usc/16/839a.md?p=19) and for billing credits for [major resources](/usc/16/839a.md?p=12), including [conservation](/usc/16/839a.md?p=3) activities, entered into pursuant to this section shall contain such terms and conditions, applicable after the contract is entered into, as will—
  - (1) insure timely construction, scheduling, completion, and operation of [resources](/usc/16/839a.md?p=19),
  - (2) insure that the costs of any [acquisition](/usc/16/620e.md?p=1) are as low as reasonably possible, consistent (A) with sound engineering, operating, and safety practices, and (B) the protection, mitigation, and enhancement of [fish and wildlife](/usc/16/3102.md?p=17), including related spawning grounds and habitat affected by the development of such [resources](/usc/16/839a.md?p=19), and
  - (3) insure that the [Administrator](/usc/16/839a.md?p=2) exercises effective oversight, inspection, audit, and review of all aspects of such construction and operation.

  Such contracts shall contain provisions assuring that the [Administrator](/usc/16/839a.md?p=2) has the authority to approve all costs of, and proposals for, major modifications in construction, scheduling or operations and to assure that the [Administrator](/usc/16/839a.md?p=2) is provided with such current information as he deems necessary to evaluate such construction and operation.

- (j) **Obligations not to be considered general obligations of United States or secured by full faith and credit of United States—**
  - (1) All contractual and other obligations required to be carried out by the [Administrator](/usc/16/839a.md?p=2) pursuant to this chapter shall be secured solely by the [Administrator](/usc/16/839a.md?p=2)’s revenues received from the sale of [electric power](/usc/16/839a.md?p=9) and other services. Such obligations are not, nor shall they be construed to be, general obligations of the United States, nor are such obligations intended to be or are they secured by the full faith and credit of the United States.
  - (2) All contracts entered into by the [Administrator](/usc/16/839a.md?p=2) for the [acquisition](/usc/16/620e.md?p=1) of [resources](/usc/16/839a.md?p=19) pursuant to this chapter shall require that, in the sale of any obligations, all offerings and promotional material for the sale of such obligations shall include the language contained in the second sentence of paragraph (1) of this subsection. The [Administrator](/usc/16/839a.md?p=2) shall monitor and enforce such requirement.
- (k) **Equitable distribution of benefits—** In the exercise of his authorities pursuant to this section, the [Administrator](/usc/16/839a.md?p=2) shall, consistent with the provisions of this chapter and the [Administrator](/usc/16/839a.md?p=2)’s obligations to particular [customer](/usc/16/839a.md?p=7) classes, insure that benefits under this section, including financial and technical assistance, conduct of [conservation](/usc/16/839a.md?p=3) demonstrations, and experimental [projects](/usc/16/410r–5.md?p=c-4), services, and billing credits, are distributed equitably throughout the region.
- (l) **Investigations—**
  - (1) The [Administrator](/usc/16/839a.md?p=2) is authorized and directed to investigate opportunities for adding to the region’s [resources](/usc/16/839a.md?p=19) or reducing the region’s power costs through the accelerated or cooperative development of [resources](/usc/16/839a.md?p=19) located outside the [States](/usc/16/544.md?p=r) of Idaho, Montana, Oregon, and Washington if such [resources](/usc/16/839a.md?p=19) are [renewable resources](/usc/16/839a.md?p=16), and are now or in the future planned or considered for eventual development by nonregional agencies or authorities that will or would own, sponsor, or otherwise develop them. The [Administrator](/usc/16/839a.md?p=2) shall keep the [Council](/usc/16/839a.md?p=6) fully and currently informed of such investigations, and seek the [Council](/usc/16/839a.md?p=6)’s advice as to the desirability of pursuing such investigations.
  - (2) The [Administrator](/usc/16/839a.md?p=2) is authorized and directed to investigate periodically opportunities for mutually beneficial interregional exchanges of [electric power](/usc/16/839a.md?p=9) that reduce the need for additional generation or generating capacity in the Pacific Northwest and the regions with which such exchanges may occur. The [Council](/usc/16/839a.md?p=6) shall [take](/usc/16/3102.md?p=18) into consideration in formulating a plan such investigations.
  - (3) After the [Administrator](/usc/16/839a.md?p=2) submits a report to Congress pursuant to paragraph (5) of this subsection, the [Administrator](/usc/16/839a.md?p=2) is authorized to [acquire](/usc/16/620e.md?p=1) [resources](/usc/16/839a.md?p=19) consistent with such investigations and consistent with the plan or, if no plan is in effect, with the priorities of [section 839b(e)(1) of this title](/usc/16/839b.md?p=e-1) and the considerations of [section 839b(e)(2) of this title](/usc/16/839b.md?p=e-2). Such [acquisitions](/usc/16/620e.md?p=1) shall be in accordance with the provisions of this subsection.
  - (4) The [Administrator](/usc/16/839a.md?p=2) shall conduct the investigations and the [acquisitions](/usc/16/620e.md?p=1), if any, authorized under this subsection with the assistance of other Federal agencies as may be appropriate.
  - (5) No later than July 1, 1981, the [Administrator](/usc/16/839a.md?p=2) shall submit to the Congress a report of the results of the investigations undertaken pursuant to this subsection, together with the prospects for obtaining additional [resources](/usc/16/839a.md?p=19) under the authority granted by this subsection and for reductions in generation or generating capacity through exchanges.
- (m) **Offering of reasonable shares to each Pacific Northwest electric utility—** Except as to [resources](/usc/16/839a.md?p=19) under construction on December 5, 1980, the [Administrator](/usc/16/839a.md?p=2) shall determine in each case of a [major resource](/usc/16/839a.md?p=12) [acquisition](/usc/16/620e.md?p=1) that a reasonable share of the particular [resource](/usc/16/839a.md?p=19), or a reasonable equivalent, has been offered to each Pacific Northwest electric utility for ownership, participation, or other sponsorship, but not in excess of the amounts needed to meet such utility’s Regional load.

## Source credit

(Pub. L. 96–501, § 6, Dec. 5, 1980, 94 Stat. 2717.)

## Notes

### Editorial Notes

### References in Text

The National Environmental Policy Act of 1969, referred to in subsec. (c)(4)(A), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.

The Federal Columbia River Transmission System Act, referred to in subsecs. (c)(4)(C), (d), and (h)(6)(B), is Pub. L. 93–454, Oct. 18, 1974, 88 Stat. 1376, which is classified generally to chapter 12G (§ 838 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 838 of this title and Tables.