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1758

PUBLIC WORKS APPROPRIATION ACT, 1965

Oregon portion of the 750-kilovolt directcurrent line between The Dalles Dam and Hoover Dam; $29,300,000 for the Oregon portion of the 750-kilovolt direct-current line from The Dalles Dam via Nevada to the Sylmar substation, Los Angeles; and $11,900,000 for the Oregon portion of the 500-kilovolt alternating-current line between the John Day Dam via the Central Valley of California to the Vincent substation, Los Angeles.

"The committee directs that before construction of The Dalles Dam-Hoover Dam line begins, the Secretary shall review load potentials on the line and find that it will be financially feasible and self-liquidating over its service life. In this review, he will consider the importance of this line to, and its economic effect on, the entire intertie system which he has recommended, and shall take cognizance of the economic value of the line for diversity exchanges between the Pacific Northwest and the Pacific Southwest, as well as the advantages to the Federal Government of an interconnection between two major federally owned power systems. Before energy generated in the upper division of the Colorado River Basin may be displaced by energy transmitted on The Dalles Dam-Hoover Dam line, the Secretary shall insure that said displaced energy is marketable in such quantities and at such rates as to assure that the repayment schedule of the Upper Colorado River Basin fund will not be delayed or otherwise adversely affected; and will not displace energy supplied to consumers (excepting cooperatives and public bodies as defined in the Bonneville Project Act) from any other

source.

"With respect to the intertie lines, the committee approves the existing policy of the Department to the effect that it will not enter into contracts which call for wheeling charges greater than Federal costs for such service, or which do not provide to the Department wheeling capacity in the lines to meet its full requirements. It is the desire of the committee that all such contracts be made public and be transmitted to

1. Keating amendment

the Senate not less than 60 days before their effective dates.

"The committee directs that none of these funds shall be expended until there has been enacted into law S. 1007, or similar legislation, guaranteeing electric consumers in the Pacific Northwest first call on electric energy generated at Federal hydroelectric plants in that region and to guarantee elec tric consumers in other regions reciprocal priority.

"The committee also directs that no contracts between the Secretary and nonFederal agencies for construction of portions of these transmission lines shall be effective until funds appropriated in this act become available after requirements set forth in this report have been met; and until the Secretary has directed the Bonneville Power Administration and the Bureau of Reclamation to proceed with construction of all those portions of the transmission lines for which appropriations are provided in this bill. It is the desire of the committee that construction of the 750-kilovolt directcurrent line between The Dalles Dam and Hoover Dam shall commence not later than construction of other lines of the intertie is initiated." S. Rept. No. 1326, 88th Cong., 2d Sess. 37-38 (1964).

The report also states, at page 33, that the same requirements and restrictions shall govern the use of funds recommended for the Bureau of Reclamation for the Intertie.

The conference report states that the conferees are in agreement with the above provision of the Senate report. H.R. Rept. No. 1794, 88th Cong., 2d Sess. 42 (1964).

Legislative History. H.R. 11579, Public Law 88-511 in the 88th Congress. Reported in House from Appropriations June 11, 1964; H.R. Rept. No. 1479. Passed House June 16, 1964. Reported in Senate from Appropriations, Aug. 5, 1964; S. Rept. No. 1326. Passed Senate, amended, Aug. 7, 1964. Senate asks for a conference Aug. 7, 1964. House agrees to a conference Aug. 12. 1964. Conference report filed Aug. 13, 1964; H.R. Rept. No. 1794. House agrees to conference report Aug. 14, 1964. Senate agrees to conference report Aug. 14, 1964.

NOTE OF OPINION

The Keating Amendment does not apply to the Bureau of Reclamation components of the Pacific Northwest-Pacific Southwest

Intertie. Memorandum of Solicitor Barry to Assistant Secretary, Water and Power Development, August 5, 1964.

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RECREATION DEVELOPMENT, SANFORD RESERVOIR

An act to provide for the establishment and administration of public recreational facilities at the Sanford Reservoir area, Canadian River project, Texas, and for other purposes. (Act of August 31, 1964, Public Law 88-536, 78 Stat. 744)

[Sec. 1. Recreation development.]-The Secretary of the Interior is hereby authorized to investigate, plan, construct, operate and maintain, or otherwise provide for basic public outdoor recreation facilities at the Sanford Reservoir area, Canadian Federal reclamation project, to acquire or otherwise include within the project area such adjacent lands or interests therein as are necessary for present or future public recreation use, and to provide for the public use and enjoyment of project lands, facilities, and water areas in a manner coordinated with other project purposes: Provided, That this Act shall not provide the Secretary with a basis for allocation to recreation of water, reservoir capacity, or joint project costs of the Canadian River project nor affect the priority for municipal use of water stored in Sanford Reservoir, or the priority of use for municipal purposes of the capacity of said reservoir. The Secretary is authorized to enter into agreements with Federal agencies or State or local public bodies for the operation, maintenance, or additional development of project lands or facilities, or to dispose of project lands or facilities to Federal agencies or State or local public bodies by lease, transfer, conveyance or exchange upon such terms and conditions as will best promote the development and operation of such lands or facilities in the public interest for recreation purposes. The cost of providing basic recreation facilities shall be nonreimbursable. In carrying out the aforesaid activities the Secretary shall take cognizance of the effect of the fish and wildlife plan approved by the President December 19, 1962, pursuant to the Act of December 29, 1950 (64 Stat. 1124) in providing facilities at the Canadian River project which have general recreation utility. (78 Stat. 744; 43 U.S.C. § 600d) Sec. 2. [Appropriation.]—There are authorized to be appropriated such amounts, but not more than $1,100,000, as may be necessary for the investigation, preparation of plans, construction and acquisition of lands authorized in this Act. (78 Stat. 744; 43 U.S.C. § 600e)

EXPLANATORY NOTES

Canadian River Project. The Canadian River project was found feasible by the Secretary of the Interior on January 13, 1950. A modification of the report was approved by him on May 3, 1950. The project was authorized, subject to the consent of Congress to the Canadian River Compact, by the Act of December 29, 1950. The Congress granted its consent to the compact by the Act of May 17, 1952. Both acts appear herein in chronological order.

Supplementary Provision: Establishment of National Monument. The Act of August 31, 1965, 79 Stat. 587, authorizes the estab

lishment of the Alibates Flint Quarries and Texas Panhandle Pueblo Culture National Monument in the vicinity of Sanford Reservoir. The act appears herein in chronological order.

Legislative History. H.R. 8135, Public Law 88-536 in the 88th Congress. Reported in House from Interior and Insular Affairs Nov. 7, 1963; H.R. Rept. No. 891. Passed House Nov. 18, 1963. Reported in Senate from Interior and Insular Affairs Aug. 17, 1964; S. Rept. No. 1461. Passed Senate Aug. 18, 1964.

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PACIFIC NORTHWEST POWER MARKETING

An act to guarantee electric consumers in the Pacific Northwest first call on electric energy generated at Federal hydroelectric plants in that region and to guarantee electric consumers in other regions reciprocal priority, and for other purposes. (Act of August 31, 1964, Public Law 88-552, 78 Stat. 756)

[Sec. 1. Definitions.]-As used in this Act

(a) "Secretary" means the Secretary of the Interior.

(b) "Pacific Northwest" means (1) the region consisting of the States of Oregon and Washington, the State of Montana west of the Continental Divide, and such portions of the States of Nevada, Utah, and Wyoming within the Columbia drainage basin and of the State of Idaho as the Secretary may determine to be within the marketing area of the Federal Columbia River power system, and (2) any contiguous areas, not in excess of seventy-five airline miles from said region, which are a part of the service area of a distribution cooperative which has (i) no generating facilities, and (ii) a distribution system from which it serves both within and without said region.

(c) "Surplus energy" means electric energy generated at Federal hydroelectric plants in the Pacific Northwest which would otherwise be wasted because of the lack of a market therefor in the Pacific Northwest at any established

rate.

(d) "Surplus peaking capacity" means electric peaking capacity at Federal hydroelectric plants in the Pacific Northwest for which there is no demand in the Pacific Northwest at any established rate.

(e) "Non-Federal utility" means any utility not owned or controlled by the United States, including any entity (1) which such a utility owns or controls, in whole or in part, or is controlled by, (2) which is controlled by those controlling such utility, or (3) of which such utility is a member.

(f) "Energy requirements of any Pacific Northwest customer" means the full requirements for electric energy of (1) any purchaser from the United States for direct consumption in the Pacific Northwest, and (2) any non-Federal utility in that region in excess of (i) the hydroelectric energy available for its own use from its generating plants in the Pacific Northwest, and (ii) any additional energy available for use in the Pacific Northwest which, under a then existing contract, the utility (A) can obtain at no higher incremental cost than the rate charged by the United States, or (B) is required to accept.

(g) Terms not defined herein shall, unless the context requires otherwise, have the meaning given them in the March 1949 Glossary of Important Power and Rate Terms prepared under the supervision of the Federal Power Commission. (78 Stat. 756; 16 U.S.C. § 837)

EXPLANATORY NOTE

Extension of Marketing Area. Order No. 2883 of October 6, 1964, of the Secretary of the Interior provides as follows: "Pur

suant to subsection (b) of section 1 of the Act of August 31, 1964, Public Law 88-552, and Reorganization Plan No. 3 of 1950, 64

PACIFIC NORTHWEST POWER MARKETING

Stat. 1262, those portions of the States of
Nevada, Utah and Wyoming within the
Columbia drainage basin, and all of the
State of Idaho are included within the

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marketing area of the Bonneville Power Administration and the Federal Columbia River Power System." (29 FR 14081)

Sec. 2. [Sales outside Pacific Northwest-Prior notice to Northwest customers.]-Subject to the provisions of this Act, the sale, delivery, and exchange of electric energy generated at, and peaking capacity of, Federal hydroelectric plants in the Pacific Northwest for use outside the Pacific Northwest shall be limited to surplus energy and surplus peaking capacity. At least 30 days prior to the execution of any contract for the sale, delivery, or exchange of surplus energy or surplus peaking capacity for use outside the Pacific Northwest, the Secretary shall give the then customers of the Bonneville Power Administration written notice that negotiations for such a contract are pending, and thereafter, at any customer's request, make available for its inspection current drafts of the proposed contract. (78 Stat. 756; 16 U.S.C. § 837a)

Sec. 3. [Criteria for contracts for the sale of surplus energy outside the Pacific Northwest-Determination of Northwest energy requirements.]-(a) Any contract for the sale or exchange of surplus energy for use outside the Pacific Northwest, or as replacement, directly or indirectly, within the Pacific Northwest for hydroelectric energy delivered for use outside that region by a non-Federal utility, shall provide that the Secretary, after giving the purchaser notice not in excess of sixty days, will not deliver electric energy under such contract whenever it can reasonably be foreseen that such delivery would impair his ability to meet, either at or after the time of such delivery, the energy requirements of any Pacific Northwest customer. The purchaser shall obligate himself not to take delivery of or use any such energy to supply any load under such conditions that discontinuance of deliveries from the Pacific Northwest in sixty days would cause undue hardship to the purchaser or in his territory, and, further, the purchaser shall acknowledge full responsibility if any such hardship occurs. Deliveries by a non-Federal utility from its generating plants in the Pacific Northwest for use on its own distribution system in an area outside but contiguous to the Pacific Northwest (not including any extension of its outside service area by merger or acquisition after the effective date of this Act) shall not be deemed deliveries by such utility for use outside the Pacific Northwest. (b) Electric energy generated at Federal hydroelectric plants in the Pacific. Northwest which can be conserved, for which there is no immediate demand in the Pacific Northwest at any established rate, but for which the Secretary determines there may be a demand in meeting the future requirements of the Pacific Northwest, may be delivered for use outside that region only on a provisional basis under contracts providing that if the Secretary determines at a subsequent time that, by virtue of prior deliveries under such contract, the Secretary is or will be unable to meet the energy requirements of any Pacific Northwest customer, the purchaser will return the full amount of energy delivered to him, or such portion or portions thereof as may be required, at such time or times as may be specified by the Secretary, except that the Secretary shall not require return during the purchaser's daily peak periods. The Secretary shall require

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PACIFIC NORTHWEST POWER MARKETING

the return of the energy provisionally delivered hereunder, to such extent and at such times, as may be necessary to meet demands at any established rate for use within the Pacific Northwest.

(c) Any contract for the disposition of surplus peaking capacity shall provide that (1) the Secretary may terminate the contract upon notice not in excess of sixty months, and (2) the purchaser shall advance or return the energy necessary to supply the peaking capacity, except that the Secretary shall not require such advance or return during the purchaser's daily peak periods. The Secretary may contract for the sale of such energy to the purchaser, in lieu of its return, under the conditions prescribed in subsection (a) of this section.

(d) The Secretary, in making any determination of the energy requirements of any Pacific Northwest customer which is a non-Federal utility having hydroelectric generating facilities, shall exclude any amounts of hydroelectric energy generated in the Pacific Northwest and disposed of outside the Pacific Northwest by the utility which, through reasonable measures, could have been conserved or otherwise kept available for the utility's own needs in the Pacific Northwest. The Secretary may sell the utility as a replacement therefor only what would otherwise be surplus energy. (78 Stat. 756; 16 U.S.C. § 837b)

Sec. 4. [Sale of electric energy in the Pacific Northwest which is generated outside the area.]-Any contract of the Secretary for the sale or exchange of electric energy generated at, or peaking capacity of, Federal hydroelectric plants in marketing areas outside the Pacific Northwest for use within the Pacific Northwest shall be subject to limitations and conditions corresponding to those provided in sections 2 and 3 for any contract for the sale or exchange of hydroelectric energy or peaking capacity generated within the Pacific Northwest for use outside the Pacific Northwest. (78 Stat. 757; 16 U.S.C. § 837c)

Sec. 5. [Exchange of energy during refill periods-Return of energy to Pacific Northwest.]-Without regard to the limitations specified in sections 2 and 3 of this Act the Secretary may enter into contracts for the exchange with areas other than the Pacific Northwest of (1) surplus energy during the Pacific Northwest storage refill period, (2) any hydroelectric energy during the Pacific Northwest storage refill period which will be returned to the Pacific Northwest in equal amounts during the same Pacific Northwest refill period or the succeeding storage drawdown period, (3) any hydroelectric energy which will be returned to the Pacific Northwest in equal amounts during the same Pacific Northwest storage drawdown period, (4) hydroelectric peaking capacity, or (5) surplus peaking capacity for energy. All benefits from such exchanges, including resulting increases of firm power, shall be shared equitably by the areas involved, having regard to the secondary energy and other contributions made by each. (78 Stat. 758; 16 U.S.C. § 837d)

Sec. 6. [Use of excess capacity in Federal transmission lines.]-Any capacity in Federal transmission lines connecting, either by themselves or with nonFederal lines, a generating plant in the Pacific Northwest or Canada with the other area or with any other area outside the Pacific Northwest, which is not required for the transmission of Federal energy or the energy described in section 9, shall be made available as a carrier for transmission of other electric

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