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Act of June 10 1920—Federal Power Commission and development of

water power-Public lands ---Act of March 3, 1921–No authority in forest reserves without consent

of Congress--


An Act To create a Federal Power Commission; to provide for the

improvement of navigation; the development of water power; the use of the public lands in relation thereto, and to repeal section 18 of the river and harbor appropriation Act, approved August 8, 1917, and for other purposes.



Be it enacted by the Senate and House of Representa

tives of the United States of America in Congress assemFederal water bled, That a commission is hereby created and estabpower act.

Federal Power lished, to be known as the Federal Power Commission Commission. (hereinafter referred to as the commission), which composition of shall be composed of the Secretary of War, the Secre

tary of the Interior, and the Secretary of Agriculture. Two members of the commission shall constitute a quorum for the transaction of business, and the commission shall have an official seal, which shall be judicially noticed. The President shall designate the chair

man of the commission. Executive Sec

Sec. 2. That the commission shall appoint an execuretary.

tive secretary, who shall receive a salary of $5,000 a Detail of Army year, and prescribe his duties, and the commission may engineer officer. request the President of the United States to detail an

officer from the United States Engineer Corps to serve the commission as engineer officer, his duties to be pre

scribed by the commission. Execution of The work of the commission shall be performed by work by Depart and through the Departments of War, Interior, and 'of , etc.

Agriculture and their engineering, technical, clerical, and other personnel except as may be otherwise pro

vided by law. Expenses thorized.

All the expenses of the commission, including rent in the District of Columbia, all necessary expenses for transportation and subsistence, including, in the discretion of the commission, a per diem of not exceeding $4 in lieu of subsistence incurred by its employees under its orders in making any investigation, or conducting field work, or upon official business outside of the District of Columbia and away from their designated points of duty, shall be allowed and paid on the presentation of itemized vouchers therefor approved

by a member or officer of the commission duly au

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thorized for that purpose; and in order to defray the expenses made necessary by the provisions of this Act there is hereby authorized to be appropriated such sums as Congress may hereafter determine, and the sum of Appropriation. $100,000 is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, available until expended, to be paid out upon warrants drawn on the Secretary of the Treasury upon order of the commission. SEC. 3. That the words defined in this section shall

Meaning of have the following meanings for the purposes of this terms as used. Act, to wit: “Public lands" means such lands and interest in

"Public lands." lands owned by the United States as are subject to private appropriation and disposal under public-land laws. It shall not include “reservations," as hereinafter defined.

"Reservations” means national monuments, national "Reservations." parks, national forests, 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 purpose.

Corporation” means a corporation organized un- "Corporation." der the laws of any State or of the United States empowered to develop, transmit, distribute, sell, lease, or utilize power in addition to such other powers as it may possess, and authorized to transact in the State or States in which its project is located all business necessary to effect the purposes of a license under this Act. It shall not include " municipalities” as hereinafter defined.

"State” means a State admitted to the Union, the District of Columbia, and any organized Territory of the United States.

“ Municipality” means a city, county, irrigation dis- "Municipal trict, drainage district, or other political subdivision ity." or agency of a State competent under the laws thereof to carry on the business of developing, transmitting, utilizing, or distributing power.

“ Navigable waters” means those parts of streams or "Nyigoble other bodies of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the several States, 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 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

« Government dam."


Congress for improvement by the United States or shall have been recommended to Congress for such improve

ment after investigation under its authority. "Municipal

“Municipal purposes” means and includes all purpurposes."

poses within municipal powers as defined by the constitution or laws of the State or by the charter of the municipality.

“Government dam” means a dam or other work, constructed or owned by the United States for Government

purposes, with or without contribution from others. “ Project."

“Project” means complete unit 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, 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 or with the interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit 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. “ Project “Project works ” means the physical structures of a


“Net investment” in a project 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,” plus similar costs of additions 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 Items excluded. 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, or similar reserves, or expended for additions or betterments or

used for the purposes for which such reserves were « Cost." created. The term “cost” shall include, in so far as

applicable, the elements thereof prescribed in said classification, but shall not include expenditures from funds obtained through donations by States, municipalities, individuals, or others, and said classification of investment of the Interstate Commerce Commission shall in so far as applicable be published and promulgated as a part of

the rules and regulations of the commission. Powers of com

SEC. 4. That the commission is hereby authorized and To investigate, empowered-, etc., water

(a) To make investigations and to collect and record industry, etc.

data concerning the utilization of the water resources of

“ Net




sources, power





any region 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 pub- ernment d ams, lic purposes, and what is a fair value of such power, to etc. the extent the commission may deem necessary or useful for the purposes of this Act. In order to aid the commission in determining the net

Detailed stateinvestment of a licensee in any project, the licensee shall, ments of cost of upon oath, within a reasonable period of time, to be fixed to be furnished by the commission, after the construction of the original by licensees. project or any addition thereto or betterment thereof, file with the commission, in such detail as the commission may require, a statement in duplicate showing the actual legitimate cost of construction of such project, addition, or betterment, and the price paid for water rights, rights of way, lands, or interest in lands. The commission shall deposit one of said statements with the

Free access to Secretary of the Treasury. The licensee shall grant to project, records, the commission or to its duly authorized agent or agents, at all reasonable times, free access to such project, addition, or betterment, and to all maps, profiles, contracts, reports of engineers, accounts, books, records, and all other papers and documents relating thereto.

(b) To cooperate with the executive departments and other agencies of State or National Governments in such Federal of State investigations; and for such purpose the several depart- vestigations. ments and agencies of the National Government are authorized and directed upon the request of the commission, to furnish such records, papers, and information in their possession as may be requested by the commission, and temporarily to detail to the commission such officers or experts as may be necessary in such investigations.

(c) To make public from time to time the information secured hereunder, and to provide for the publication of mation, etc. its reports and investtigations in such form and manner as may be best adapted for public information and use. The commission, on or before the first Monday in Decem

Reports to Conber of each year, shall submit to Congress for the fiscal gress year preceding a classified report showing the permits and licenses issued under this Act, and in each case the parties thereto, the terms prescribed, and the moneys received, if any, on account thereof.

(d) To issue licenses to citizens of the United States, Issue licenses or to any association of such citizens, or to any corpora

for improving

navigation, de tion organized under the laws of the United States or veloping water any State thereof, or to any State, or municipality for power, etc. the purpose of constructing, operating, and maintaining dams, water conduits, reservoirs, power houses, transmission lines, or other project works necessary or con

Cooperate with

Publish infor

Restriction on


venient for the development and improvement of navigation, and for the development, transmission, and utilization of power across, along, from or in any of the navigable waters of the United States, or upon any part of the public lands and reservations of the United States (including the Territories), or for the purpose of utilizing the surplus water or water power from any Govern

ment dam, except as herein provided : Provided, That liuse in reserva. censes shall be issued within any reservation only after a

finding by the commission 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 of the department under whose supervision such reservation falls

shall deem necessary for the adequate protection and Approval of utilization of such reservation: Provided further, That navigable waters. no license affecting the navigable capacity of any navi

gable waters of the United States shall be issued until the plans of the dam or other structures affecting navigation have been approved by the Chief of Engineers and the Secretary of War. Whenever the contemplated im'provement is, in the judgment of the commission, 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

and shall become a part of the records of the commisUse of Govern- sion: Provided further, That in case the commission shall public purposes.' find that any Government dam may be advantageously

used by the United States for public purposes in addition 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 conNotice of ap-structed prior to the passage of this Act: And provided preliminary per: further, That upon the filing of any application for a mit.

license which has not been preceded by a preliminary permit under subsection (e) of this section, notice shall be given and published as required by the proviso of

said subsection. Issue prelimi. (e) To issue preliminary permits for the purpose of nary, permits to applicants.

enabling applicants for a license hereunder to secure the Proviso. Notice thereof

data and to perform the acts required by section 9 hereof: to State, etc. Provided, however, That upon the filing of any applica

tion for a preliminary permit by any person, association, or corporation the commission, before granting such application, shall at once give notice of such application in writing to any State or municipality likely to be interested in or affected by such application: and shall also publish notice of such application for eight weeks in a daily or weekly newspaper published in the county or counties in which the project or any part thereof or the lands affected thereby are situated.

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