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

# §839f. Administrative provisions

- (a) **Contract authority—** Subject to the provisions of this chapter, the [Administrator](/usc/16/839a.md?p=2) is authorized to contract in accordance with section 2(f) of the Bonneville Project Act of 1937 ([16 U.S.C. 832a(f)](/usc/16/832a.md?p=f)). Other provisions of law applicable to such contracts on December 5, 1980, shall continue to be applicable.
- (b) **Executive and administrative functions of Administrator of Bonneville Power Administration; sound and businesslike implementation of chapter—** The [Administrator](/usc/16/839a.md?p=2) shall discharge the executive and administrative functions of his office in accordance with the policy established by the Bonneville Project Act of 1937 ([16 U.S.C. 832](/usc/16/832.md) and following), [section 7152(a)(2)](/usc/16/7152.md) and (3) of [title 42](/usc/42.md), and this chapter. The [Secretary](/usc/16/839a.md?p=20) of Energy, the [Council](/usc/16/839a.md?p=6), and the [Administrator](/usc/16/839a.md?p=2) shall [take](/usc/16/3102.md?p=18) such steps as are necessary to assure the timely implementation of this chapter in a sound and businesslike manner. Nothing in this chapter shall be construed by the [Secretary](/usc/16/839a.md?p=20), the [Administrator](/usc/16/839a.md?p=2), or any other official of the Department of Energy to modify, alter, or otherwise affect the requirements and directives expressed by the Congress in [section 7152(a)(2)](/usc/16/7152.md) and (3) of [title 42](/usc/42.md) or the operations of such officials as they existed prior to December 5, 1980.
- (c) **Limitations and conditions on contracts for sale or exchange of electric power for use outside Pacific Northwest—** Any contract of the [Administrator](/usc/16/839a.md?p=2) for the sale or exchange of [electric power](/usc/16/839a.md?p=9) for use outside the Pacific Northwest shall be subject to limitations and conditions corresponding to those provided in sections 2 and 3 of the Act of August 31, 1964 ([16 U.S.C. 837a](/usc/16/837a.md) and 837b) for any contract for the sale, delivery, or exchange of hydroelectric energy or peaking capacity generated within the Pacific Northwest for use outside the Pacific Northwest. In applying such sections for the purposes of this subsection, the term “surplus energy” shall mean electric energy for which there is no market in the Pacific Northwest at any rate established for the disposition of such energy, and the term “surplus peaking capacity” shall mean electric peaking capacity for which there is no demand in the Pacific Northwest at the rate established for the disposition of such capacity. The authority granted, and duties imposed upon, the [Secretary](/usc/16/839a.md?p=20) by sections [5](/usc/16/5.md) and [7](/usc/16/7.md) of such Act ([16 U.S.C. 837e](/usc/16/837e.md) and 837f) [[16 U.S.C. 837d](/usc/16/837d.md) and 837f] shall also apply to the [Administrator](/usc/16/839a.md?p=2) in connection with [resources](/usc/16/839a.md?p=19) acquired by the [Administrator](/usc/16/839a.md?p=2) pursuant to this chapter. The [Administrator](/usc/16/839a.md?p=2) shall, in making any determination, under any contract executed pursuant to [section 839c of this title](/usc/16/839c.md), of the [electric power](/usc/16/839a.md?p=9) requirements of any Pacific Northwest [customer](/usc/16/839a.md?p=7), which is a non-Federal entity having its own generation, exclude, in [addition](/usc/16/410r–5.md?p=c-2) to hydroelectric generated energy excluded from such requirements pursuant to [section 3(d)](/usc/16/3.md) of such Act ([16 U.S.C. 837b(d)](/usc/16/837b.md?p=d)), any amount of energy included in the [resources](/usc/16/839a.md?p=19) of such [customer](/usc/16/839a.md?p=7) for service to firm loads in the region if (1) such amount was disposed of by such [customer](/usc/16/839a.md?p=7) outside the region, and (2) as a result of such disposition, the firm energy requirements of such [customer](/usc/16/839a.md?p=7) or other [customers](/usc/16/839a.md?p=7) of the [Administrator](/usc/16/839a.md?p=2) are increased. Such amount of energy shall not be excluded, if the [Administrator](/usc/16/839a.md?p=2) determines that through reasonable measures such amount of energy could not be conserved or otherwise retained for service to regional loads. The [Administrator](/usc/16/839a.md?p=2) may sell as replacement for any amount of energy so excluded only energy that would otherwise be surplus.
- (d) **Disposition of power which does not increase amount of firm power Administrator is obligated to provide to any customer—** No restrictions contained in [subsection (c)](#c) shall limit or interfere with the sale, exchange or other disposition of any power by any utility or group thereof from any existing or new non-Federal [resource](/usc/16/839a.md?p=19) if such sale, exchange or disposition does not increase the amount of firm power the [Administrator](/usc/16/839a.md?p=2) would be obligated to provide to any [customer](/usc/16/839a.md?p=7). In [addition](/usc/16/410r–5.md?p=c-2) to the directives contained in subsections [(i)(1)(B)](#i-1-B) and [(i)(3)](#i-3) and subject to:
  - (1) any contractual obligations of the [Administrator](/usc/16/839a.md?p=2),
  - (2) any other obligations under existing law, and
  - (3) the availability of capacity in the Fed­eral transmission system,

  the [Administrator](/usc/16/839a.md?p=2) shall provide transmission access, load factoring, storage and other services normally attendant thereto to such utilities and shall not discriminate against any utility or group thereof on the basis of independent development of such [resource](/usc/16/839a.md?p=19) in providing such services.

- (e) **Judicial review; suits—**
  - (1) For purposes of sections [701](/usc/5/701.md) through [706](/usc/5/706.md) of title 5, the following actions shall be final actions subject to judicial review—
    - (A) adoption of the plan or amendments thereto by the [Council](/usc/16/839a.md?p=6) under [section 839b of this title](/usc/16/839b.md), adoption of the program by the [Council](/usc/16/839a.md?p=6), and any determination by the [Council](/usc/16/839a.md?p=6) under [section 839b(h) of this title](/usc/16/839b.md?p=h);
    - (B) sales, exchanges, and purchases of [electric power](/usc/16/839a.md?p=9) under [section 839c of this title](/usc/16/839c.md);
    - (C) the [Administrator](/usc/16/839a.md?p=2)’s [acquisition](/usc/16/620e.md?p=1) of [resources](/usc/16/839a.md?p=19) under [section 839d of this title](/usc/16/839d.md);
    - (D) implementation of [conservation](/usc/16/839a.md?p=3) measures under [section 839d of this title](/usc/16/839d.md);
    - (E) execution of contracts for assistance to sponsors under [section 839d(f) of this title](/usc/16/839d.md?p=f);
    - (F) granting of credits under [section 839d(h) of this title](/usc/16/839d.md?p=h);
    - (G) final rate determinations under [section 839e of this title](/usc/16/839e.md); and
    - (H) any rule prescribed by the [Administrator](/usc/16/839a.md?p=2) under [section 839e(m)(2) of this title](/usc/16/839e.md?p=m-2).
  - (2) The record upon review of such final actions shall be limited to the administrative record compiled in accordance with this chapter. The scope of review of such actions without a hearing or after a hearing shall be governed by [section 706 of title 5](/usc/5/706.md), except that final determinations regarding rates under [section 839e of this title](/usc/16/839e.md) shall be supported by substantial evidence in the rulemaking record required by [section 839e(i) of this title](/usc/16/839e.md?p=i) considered as a whole. The scope of review of an action under [section 839d(c) of this title](/usc/16/839d.md?p=c) shall be governed by [section 706 of title 5](/usc/5/706.md). Nothing in this section shall be construed to require a hearing pursuant to section 554, 556, or 557 of title 5.
  - (3) Nothing in this section shall be construed to preclude judicial review of other final actions and decisions by the [Council](/usc/16/839a.md?p=6) or [Administrator](/usc/16/839a.md?p=2).
  - (4) For purposes of this subsection—
    - (A) [major resources](/usc/16/839a.md?p=12) shall be deemed to be acquired upon publication in the Federal Register pursuant to [section 839d(c)(4)(B) of this title](/usc/16/839d.md?p=c-4-B);
    - (B) [resources](/usc/16/839a.md?p=19), other than [major resources](/usc/16/839a.md?p=12), shall be deemed to be acquired upon execution of the contract therefor;
    - (C) [conservation](/usc/16/839a.md?p=3) measures shall be deemed to be implemented upon execution of the contract or grant therefor; and
    - (D) rate determinations pursuant to [section 839e of this title](/usc/16/839e.md) shall be deemed final upon confirmation and approval by the Federal Energy Regulatory [Commission](/usc/16/544.md?p=c).
  - (5) Suits to challenge the constitutionality of this chapter, or any action thereunder, final actions and decisions taken pursuant to this chapter by the [Administrator](/usc/16/839a.md?p=2) or the [Council](/usc/16/839a.md?p=6), or the implementation of such final actions, whether brought pursuant to this chapter, the Bonneville Project Act [[16 U.S.C. 832](/usc/16/832.md) et seq.], the Act of August 31, 1964 ([16 U.S.C. 837–837h](https://uscode.house.gov/view.xhtml?req=(/us/usc/t16/s837–837h))), or the Federal Columbia River Transmission System Act ([16 U.S.C. 838](/usc/16/838.md) and following), shall be filed in the United States court of appeals for the region. Such suits shall be filed within ninety days of the time such action or decision is deemed final, or, if notice of the action is required by this chapter to be published in the Federal Register, within ninety days from such notice, or be barred. In the case of a challenge of the plan or programs or amendments thereto, such suit shall be filed within sixty days after publication of a notice of such final action in the Federal Register. Such court shall have jurisdiction to hear and determine any suit brought as provided in this section. The plan and program, as finally adopted or portions thereof, or amendments thereto, shall not thereafter be reviewable as a part of any other action under this chapter or any other law. Suits challenging any other actions under this chapter shall be filed in the appropriate court.
- (f) **Tax treatment of interest on governmental obligations—** For purposes of enabling the [Administrator](/usc/16/839a.md?p=2) to [acquire](/usc/16/620e.md?p=1) [resources](/usc/16/839a.md?p=19) necessary to meet the firm load of public bodies, cooperatives, and Federal agencies from a governmental [unit](/usc/16/430f–7.md?p=4) at a cost no greater than the cost which would be applicable in the absence of such [acquisition](/usc/16/620e.md?p=1), the exemption from gross income of interest on certain governmental obligations provided in section 103(a)(1)[^1] of title 26 shall not be affected by the [Administrator](/usc/16/839a.md?p=2)’s [acquisition](/usc/16/620e.md?p=1) of such [resources](/usc/16/839a.md?p=19) if—
  - (1) the [Administrator](/usc/16/839a.md?p=2), prior to contracting for such [acquisition](/usc/16/620e.md?p=1), certifies to his reasonable belief, that the [persons](/usc/16/450rr–1.md?p=b) for whom the [Administrator](/usc/16/839a.md?p=2) is acquiring such [resources](/usc/16/839a.md?p=19) for sale pursuant to [section 839c of this title](/usc/16/839c.md) are public bodies, cooperatives, and Federal agencies, unless the [Administrator](/usc/16/839a.md?p=2) also certifies that he is unable to [acquire](/usc/16/620e.md?p=1) such [resources](/usc/16/839a.md?p=19) without selling a portion thereof to [persons](/usc/16/450rr–1.md?p=b) who are not exempt [persons](/usc/16/450rr–1.md?p=b) (as defined in section 103(b)[^1] of title 26), and
  - (2) based upon such certification, the [Secretary](/usc/16/839a.md?p=20) of the Treasury determines in accordance with applicable regulations that less than a major portion of the [resource](/usc/16/839a.md?p=19) is to be furnished to [persons](/usc/16/450rr–1.md?p=b) who are not exempt [persons](/usc/16/450rr–1.md?p=b) (as defined in section 103(b)[^1] of title 26).

  The certification under [paragraph (1)](#f-1) shall be made in accordance with this subsection and a procedure and methodology approved by the [Secretary](/usc/16/839a.md?p=20) of the Treasury. For purposes of this subsection, the term “major portion” shall have the meaning provided by regulations issued by the [Secretary](/usc/16/839a.md?p=20) of the Treasury.

- (g) **Review of rates for sale of power to Administrator by investor-owned utility customers—** When reviewing rates for the sale of power to the [Administrator](/usc/16/839a.md?p=2) by an investor-owned utility [customer](/usc/16/839a.md?p=7) under section [839c(c)](/usc/16/839c.md?p=c) or [839d](/usc/16/839d.md) of this title, the Federal Energy Regulatory [Commission](/usc/16/544.md?p=c) shall, in accordance with [section 824h of this title](/usc/16/824h.md)—
  - (1) convene a joint [State](/usc/16/590q.md?p=a) board, and
  - (2) invest such board with such duties and authority as will assist the [Commission](/usc/16/544.md?p=c) in its review of such rates.
- (h) **Companies which own or operate facilities for the generation of electricity primarily for sale to Administrator—**
  - (1) No “company” (as defined in [section 79b(a)(2)](/usc/16/79b.md?p=a-2)[^1] of title 15), which owns or operates facilities for the generation of electricity (together with associated transmission and other facilities) primarily for sale to the [Administrator](/usc/16/839a.md?p=2) under [section 839d of this title](/usc/16/839d.md) shall be deemed an “electric utility company” (as defined in [section 79b(a)(3)](/usc/16/79b.md?p=a-3)[^1] of title 15), within the meaning of any provision or provisions of chapter 2C[^1] of title 15, if at least 90 per centum of the electricity generated by such company is sold to the [Administrator](/usc/16/839a.md?p=2) under [section 839d of this title](/usc/16/839d.md), and if—
    - (A) the organization of such company is consistent with the policies of [section 79a(b)](/usc/16/79a.md) and (c)[^1] of title 15, as determined by the Securities and Exchange [Commission](/usc/16/544.md?p=c), with the concurrence of the [Administrator](/usc/16/839a.md?p=2), at the time of such organization; and
    - (B) participation in any facilities of such “company” has been offered to public bodies and cooperatives in the region pursuant to [section 839d(m) of this title](/usc/16/839d.md?p=m).
  - (2) The [Administrator](/usc/16/839a.md?p=2) shall include in any contract for the [acquisition](/usc/16/620e.md?p=1) of a [major resource](/usc/16/839a.md?p=12) from such “company” provisions limiting the amount of equity investment, if any, in such “company” to that which the [Administrator](/usc/16/839a.md?p=2) determines will be consistent with achieving the lowest attainable power costs attributable to such [major resource](/usc/16/839a.md?p=12).
  - (3) In the case of any “company” which meets the requirements of [paragraph (1)](#h-1), the [Administrator](/usc/16/839a.md?p=2), with the concurrence of such [Commission](/usc/16/544.md?p=c), shall approve all significant contracts entered into by, and between, such “company” and any sponsor company or any subsidiary of such sponsor company which are determined to be consistent with the policies of [section 79a(b)](/usc/16/79a.md) and (c)[^1] of title 15 at the time such contracts are entered into. The [Administrator](/usc/16/839a.md?p=2) and the Securities and Exchange [Commission](/usc/16/544.md?p=c) shall exercise such approval authority within sixty days after receipt of such contracts. Such contracts shall not be effective without such approval.
  - (4) Paragraph (1) of this subsection shall continue to apply to any such “company” unless the [Administrator](/usc/16/839a.md?p=2) or the Securities and Exchange [Commission](/usc/16/544.md?p=c), or both, through periodic review, (A) determine at any time that the “company” no longer operates in a manner consistent with the policies of [section 79a(b)](/usc/16/79a.md) and (c)[^1] of title 15 and in accordance with this subsection, and (B) notify the “company” in writing of such preliminary determination. This subsection shall cease to apply to such “company” thirty days after receipt of notification of a final determination thereof. A final determination shall be made only after public notice of the preliminary determination and after a hearing completed not later than sixty days from the date of publication of such notice. Such final determination shall be made within thirty days after the date of completion of such hearing.
- (i) **Electric power acquisition or disposition—**
  - (1) At the request and expense of any [customer](/usc/16/839a.md?p=7) or group of [customers](/usc/16/839a.md?p=7) of the [Administrator](/usc/16/839a.md?p=2) within the Pacific Northwest, the [Administrator](/usc/16/839a.md?p=2) shall, to the extent practicable—
    - (A) [acquire](/usc/16/620e.md?p=1) any [electric power](/usc/16/839a.md?p=9) required by (i) any [customer](/usc/16/839a.md?p=7) or group of [customers](/usc/16/839a.md?p=7) to enable them to replace [resources](/usc/16/839a.md?p=19) determined to serve firm load under [section 839c(b) of this title](/usc/16/839c.md?p=b), or (ii) [direct service industrial customers](/usc/16/839a.md?p=8) to replace [electric power](/usc/16/839a.md?p=9) that is or may be curtailed or interrupted by the [Administrator](/usc/16/839a.md?p=2) (other than power the [Administrator](/usc/16/839a.md?p=2) is obligated to replace), with the cost of such replacement power to be distributed among the [direct service industrial customers](/usc/16/839a.md?p=8) requesting such power; and
    - (B) dispose of, or assist in the disposal of, any [electric power](/usc/16/839a.md?p=9) that a [customer](/usc/16/839a.md?p=7) or group of [customers](/usc/16/839a.md?p=7) proposes to sell within or without the region at rates and upon terms specified by such [customer](/usc/16/839a.md?p=7) or group of [customers](/usc/16/839a.md?p=7), if such disposition is not in conflict with the [Administrator](/usc/16/839a.md?p=2)’s other marketing obligations and the policies of this chapter and other applicable laws.
  - (2) In implementing the provisions of subparagraphs [(A)](#i-1-A) and [(B)](#i-1-B) of paragraph (1), the [Administrator](/usc/16/839a.md?p=2) may prescribe policies and conditions for the independent [acquisition](/usc/16/620e.md?p=1) or disposition of [electric power](/usc/16/839a.md?p=9) by any [direct service industrial customer](/usc/16/839a.md?p=8) or group of such [customers](/usc/16/839a.md?p=7) for the purpose of assuring each [direct service industrial customer](/usc/16/839a.md?p=8) an opportunity to participate in such [acquisition](/usc/16/620e.md?p=1) or disposition.
  - (3) The [Administrator](/usc/16/839a.md?p=2) shall furnish services including transmission, storage, and load factoring unless he determines such services cannot be furnished without substantial interference with his power marketing program, applicable operating limitations or existing contractual obligations. The [Administrator](/usc/16/839a.md?p=2) shall, to the extent practicable, give priority in making such services available for the marketing, within and without the Pacific Northwest, of capability from [projects](/usc/16/410r–5.md?p=c-4) under construction on December 5, 1980, if such capability has been offered for sale at cost, including a reasonable rate of return, to the [Administrator](/usc/16/839a.md?p=2) pursuant to this chapter and such offer is not accepted within one year.
- (j) **Retail rate designs which encourage conservation and efficient use of electric energy, installation of consumer-owned renewable resources, and rate research and development—**
  - (1) The [Council](/usc/16/839a.md?p=6), as soon as practicable after December 5, 1980 shall prepare, in consultation with the [Administrator](/usc/16/839a.md?p=2), the [customers](/usc/16/839a.md?p=7), appropriate [State](/usc/16/590q.md?p=a) regulatory bodies, and the public, a report and shall make recommendations with respect to the various retail rate designs which will encourage [conservation](/usc/16/839a.md?p=3) and efficient use of electric energy and the installation of [consumer](/usc/16/839a.md?p=5)-owned [renewable resources](/usc/16/839a.md?p=16) on a cost-effective basis, as well as [areas](/usc/16/539m–1.md?p=1-A) for research and development for possible application to retail utility rates within the region. Studies undertaken pursuant to this subsection shall not affect the responsibilities of any [customer](/usc/16/839a.md?p=7) or the [Administrator](/usc/16/839a.md?p=2) which may exist under the Public Utility Regulatory Policies Act of 1978.
  - (2) Upon request, and solely on behalf of [customers](/usc/16/839a.md?p=7) so requesting, the [Administrator](/usc/16/839a.md?p=2) is authorized to (A) provide assistance in analyzing and developing retail rate structures that will encourage cost-effective [conservation](/usc/16/839a.md?p=3) and the installation of cost-effective [consumer](/usc/16/839a.md?p=5)-owned [renewable resources](/usc/16/839a.md?p=16); (B) provide estimates of the probable power savings and the probable amount of billing credits under [section 839d(h) of this title](/usc/16/839d.md?p=h) that might be realized by such [customers](/usc/16/839a.md?p=7) as a result of adopting and implementing such retail rate structures; and (C) solicit additional information and analytical assistance from appropriate [State](/usc/16/590q.md?p=a) regulatory bodies and the [Administrator](/usc/16/839a.md?p=2)’s other [customers](/usc/16/839a.md?p=7).
- (k) **Executive position for conservation and renewable resources—** There is hereby established within the administration an executive position for [conservation](/usc/16/839a.md?p=3) and [renewable resources](/usc/16/839a.md?p=16). Such executive shall be appointed by the [Administrator](/usc/16/839a.md?p=2) and shall be assigned responsibility for [conservation](/usc/16/839a.md?p=3) and direct-application [renewable resource](/usc/16/839a.md?p=16) programs (including the administration of financial assistance for such programs). Such position is hereby established in the senior executive service in [addition](/usc/16/410r–5.md?p=c-2) to the number of such positions heretofore established in accordance with other provisions of law applicable to such positions.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 96–501, § 9, Dec. 5, 1980, 94 Stat. 2729; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.)

## Notes

### Editorial Notes

### References in Text

The Bonneville Project Act of 1937, referred to in subsecs. (b) and (e)(5), is act Aug. 20, 1937, ch. 720, 50 Stat. 731, which is classified generally to chapter 12B (§ 832 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 832 of this title and Tables.

Act of August 31, 1964, referred to in subsec. (e)(5), is Pub. L. 88–552, Aug. 31, 1964, 78 Stat. 756, which is classified generally to chapter 12F (§ 837 et seq.) of this title. For complete classification of this Act to the Code, see Tables.

The Federal Columbia River Transmission System Act, referred to in subsec. (e)(5), 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.

Section 103 of title 26, referred to in subsec. (f), which related to interest on certain governmental obligations was amended generally by Pub. L. 99–514, title XIII, § 1301(a), Oct. 22, 1986, 100 Stat. 2602, and as so amended relates to interest on State and local bonds. Section 103(b)(3), which prior to the general amendment defined exempt persons, relates to the applicability of the interest exclusion to bonds not in registered form, etc.

Chapter 2C of title 15, referred to in subsec. (h), contained the Public Utility Holding Company Act of 1935, act Aug. 26, 1935, ch. 687, title I, 49 Stat. 803, and consisted of section 79 et seq. of Title 15, Commerce and Trade, prior to repeal by Pub. L. 109–58, title XII, § 1263, Aug. 8, 2005, 119 Stat. 974. For complete classification of this Act to the Code, see Tables.

The Public Utility Regulatory Policies Act of 1978, referred to in subsec. (j)(1), is Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3117. For complete classification of this Act to Code, see Short Title note set out under section 2601 of this title and Tables.

### Amendments

1986—Subsec. (f). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.