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INTERIOR DEPARTMENT APPROPRIATION ACT, 1939

regard to statutory authority for revised procedure for presenting Bonneville Power Administration rate and repayment data on a consolidated system basis, printed in Hearings on H.R. 2337, to Provide for the Construction of the Lower Teton Division, Teton Basin Federal Reclamation Project, Before the Irrigation and Reclamation Subcommittee of the House Committee on Interior and Insular Affairs, 88th Cong., 2d Sess. 36-38 (1964).

The requirements of the Hayden-O'Mahoney amendment are satisfied as to each reclamation project involved in the power marketing operation of the Bonneville Power Administration when each reclamation project has been compensated by being credited with so much of BPA's power revenues as have, over a reasonable period, repaid that portion of the project's investment allocated to power together with the irrigation assistance. Statement furnished by Assistant Secretary Holum for Hearings on H.R. 2337, to Provide for the Construction of the Lower Teton Division, Teton Basin Federal Reclamation Project, Before the Irrigation and Reclamation Subcommittee of the House Committee on Interior and Insular Affairs, 88th Cong., 2d Sess. 38 (1964).

Under section 9(c) of the Reclamation Project Act of 1939, as construed consistently with the Hayden-O'Mahoney amendment to the Interior Department Appropriation Act, 1939, the minimum rates for the sale of power must be such as will cover (1) an appropriate share of annual operation and maintenance costs and (2) an amount equal to 3 per cent per annum of the original power construction costs; however, if the 3 per cent factor is not enough to return power construction costs plus the irrigation subsidy (the amount of irrigation construction costs beyond the ability of the water users to repay) within a reasonable period of time, then the rates must be increased accordingly. There is no statutory obligation for the Government to recover a profit (in the form of interest) on the investment in power construction costs, and therefore all of the power revenues are available to return power construction costs and the irrigation subsidy. Three per cent per annum is a minimum rate of return which continues without regard to pay-out. Solicitor Harper Opinion, M-33473. (September 24, 1944) and M33473 (Supplemental) (September 10, 1945). [Editor's Note: Although this opinion has not specifically been overruled, it is not followed in two respects. First, the 3 per cent factor used in section 9 (c) is regarded as annual interest on the unamor

tized balance of power construction costs, rather than as a constant annual percentage of the original power costs. Second, the revenues represented by the interest component (that part of power revenues attributable to a recovery of interest on the power construction costs) are not considered to be available to return irrigation costs. This latter policy was adopted following a period of controversy culminated by the recommendation of the House Appropriations Committee against use of the interest component to return irrigation costs. H.R. Rept. No. 314, 83rd Congress, 1st Sess. 12 (1953).]

After repayment of construction charges of the Grand Valley Project and operation and maintenance costs during the repayment period, the net power revenues will be required under the Hayden-O'Mahoney amendment, to be covered into the General Treasury as miscellaneous receipts. Solicitor Harper Opinion, M-33504 (September 26, 1944).

3. Army projects

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Inasmuch as the Hayden-O'Mahoney amendment does not apply to facilities constructed by the Department of the Army, appropriate allocation of revenues should be made to the Department of the Army powerplants in the Missouri River Basin project, and as required by general provisions of law the sum represented thereby must be deposited in the general fund of the Treasury. Testimony of Assistant Solicitor Weinberg, Missouri Basin Water Problems: Joint Hearings Before the Senate Committees on Interior and Insular Affairs and Public Works, 85th Cong., 1st Sess., pt. 1, 341-42 (1957). Accord: Letter of Administrative Assistant Secretary Beasley to Mr. A. T. Samuelson, General Accounting Office, April 22, 1957; reprinted in Joint Hearings, id. at 364.

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An appropriate share of revenues ceived in connection with contracts for irrigation service from Pine Flat Dam and other Department of the Army developments from which the Secretary of the Interior disposes of irrigation benefits pursuant to section 8 of the Flood Control Act of 1944, should be deposited in the general fund of the Treasury as miscellaneous receipts. Letter of Administrative Assistant Secretary Beasley to Mr. A. T. Samuelson, General Accounting Office, April 22, 1957, reprinted in Missouri Basin Water Problems: Joint Hearings Before the Senate Committees on Interior and Insular Affairs and Public Works, 85th Cong., 1st Sess., pt. 1, at 364-66 (1957).

INTERIOR DEPARTMENT APPROPRIATION ACT, 1939 601

4. Headwater benefits

Moneys received from power licenses, under assessments made by the Federal Power Commission pursuant to section 10(f) of the Federal Power Act, for headwater benefits attributable to Reclamation reservoirs, shall be paid into the reclamation fund in accordance with the Hayden-O'Mahoney amendment of 1938. Dec. Comp. Gen., B156498 (May 24, 1966).

5. Exceptions

The legislative history of the Hayden

O'Mahoney amendment indicates that the type of contract which was intended to be excepted from its application was that authorized to be entered into under subsection I of section 4 of the Act of December 5, 1924, that is, one where the power development has been financed by the Government and the water users have obligated themselves in fact to repay all of the costs. Solicitor Harper Opinion, M-33504 (September 26, 1944), in re disposition of net power revenues from the Grand Valley project.

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[Central Valley project-Relocation authority-Acquisition of propertyContracts for work to be done-Rights-of-way.]-Central Valley project, California, $9,000,000, together with the unexpended balance of the appropriation for this project contained in the Interior Department Appropriation Act, fiscal year 1938, with authority in connection with the construction of the Central Valley project, California, (1) to purchase or condemn and to improve suitable land. for relocation of highways, roadways, railroads, telegraph, telephone, or electric transmission lines or other properties the relocation of which, in the judgment of the Secretary of the Interior, will be necessitated by construction or operation and maintenance of said project, (2) in full or part payment for said properties to be relocated to enter into contracts with the owners of said properties to be relocated whereby they undertake in whole or in part the property acquisition and work involved in relocation and, in said Secretary's discretion, to pay in advance for said work undertaken by said owners; and (3) to convey or exchange acquired rights-of-way or other lands or rights-of-way owned or held by the United States for use in connection with said project, or to grant perpetual easements therein or thereover, or to undertake improvement or construction work connected with said relocations, for the purpose of effecting completely said relocation; (52 Stat. 324)

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Sec. 3. [Short title.]-This Act may be cited as the "Interior Department Appropriation Act, 1939". (52 Stat. 342)

EXPLANATORY NOTES

Codification. Only the Hayden-O'Mahoney amendment of this Act is codified in the U.S. Code.

Editor's Note, Provisions Repeated in Appropriation Acts. Provisions which are repeated in two or more appropriation acts

appear herein only in the act in which first used.

Legislative History. H.R. 9621, Public Law 497 in the 75th Congress. H.R. Rept. No. 1855. S. Rept. No. 1566. H.R. Rept. No. 2172 (conference report).

267-067-72-vol. I-41

602

COLUMBIA RIVER FISHERY DEVELOPMENT

An act to provide for the conservation of the fishery resources of the Columbia River, establishment, operation, and maintenance of one or more stations in Oregon, Washington, and Idaho, and for the conduct of necessary investigations, surveys, stream improvements, and stocking operations for these purposes. (Act of May 11, 1958. ch. 193, 52 Stat. 345.)

[Sec. 1. Establishment of salmon cultural stations in Columbia River Basin.]-The Secretary of the Interior is authorized and directed to establish one or more salmon-cultural stations in the Columbia River Basin in each of the States of Oregon, Washington, and Idaho. Any sums appropriated for the purpose of establishing such stations may be expended, and such stations shall be established, operated, and maintained, in accordance with the provisions of the Act entitled "An Act to provide for a five-year construction and maintenance program for the United States Bureau of Fisheries", approved May 21, 1930, insofar as the provisions of such Act are not inconsistent with the provisions of this Act. (52 Stat. 345; 16 U.S.C. § 755)

Sec. 2. [Investigations, biological surveys, and experiments authorized.]— The Secretary of the Interior is further authorized and directed (1) to conduct such investigations, and such engineering and biological surveys and experiments, as may be necessary to direct and facilitate conservation of the fishery resources of the Columbia River and its tributaries; (2) to construct, install, and maintain devices in the Columbia River Basin for the improvement of feeding and spawning conditions for fish, for the protection of migratory fish from irrigation projects, and for facilitating free migration of fish over obstructions; and (3) to perform all other activities necessary for the conservation of fish in the Columbia River Basin in accordance with law. (52 Stat. 345; 16 U.S.C. § 756)

Sec. 3. [Appropriation.]—There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $500,000, or so much thereof as may be necessary, to carry out the purposes of this Act. (52 Stat. 345; 16 U.S.C. § 757)

EXPLANATORY NOTES

Popular Name. The above statute is popularly known as the Mitchell Act.

Transfer of Functions. When enacted, the authority now vested in the Secretary of the Interior by this Act was vested in the Secretary of Commerce. Section 4(e) of Reorganization Plan No. II of 1939, 53 Stat. 1433, however, transferred the Bureau of Fisheries, its personnel and functions, from the Department of Commerce to the Department of the Interior. The Bureau of Fisheries was consolidated with the Biological Survey, to be known as the Fish and Wildlife Service, pursuant to Section 3 of

Reorganization Plan No. III of 1940, 54
Stat. 1232.

Reference in the Text. The Act entitled "An Act to provide for a five-year construction and maintenance program for the United States Bureau of Fisheries", approved May 21, 1930, referred to in the text, authorizes appropriations for the establishment of fish cultural stations, substations and laboratories in various states. The Act provides, among other things, that before a station or laboratory is established in a State, it must enact legislation authorizing the United States Commissioner of Fisheries

COLUMBIA RIVER FISHERY DEVELOPMENT

or his agents to conduct fish hatching and culture, etc., in any manner and at any time he considers proper. The Act is found at 46 Stat. 371; it is not codified.

Cross Reference, Anadromous Fish Act. The Act of October 30, 1965, 79 Stat. 1125, popularly known as the Anadromous Fish Act, authorizes a program of fish conserva

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tion within the several states and the Great Lakes, other than the Columbia River basin area, similar to the program authorized by this Act. The 1965 Act appears herein in chronological order.

Legislative History. S. 2307, Public Law 502 in the 75th Congress. S. Rept. 1077. H.R. Rept. 2235.

604

FORT PECK PROJECT

An act to authorize the completion, maintenance, and operation of the Fort Peck project for navigation, and for other purposes. (Act of May 18, 1938, ch. 250, 52 Stat. 403)

[Sec. 1. Secretary of War to complete Fort Peck project-Bureau of Reclamation to transmit and sell electric energy not required in operation of dam or for navigation.]-For the purpose of improving navigation on the Missouri River, and for other purposes incidental thereto, the dam and appurtenant works now under construction at Fort Peck, Montana, and a suitable power plant for the production of hydroelectric power (which dam, power plant, and appurtenant works are hereinafter called Fort Peck project) shall be completed, maintained, and operated under the direction of the Secretary of War and the supervision of the Chief of Engineers, subject to the provisions of this Act relating to the powers and duties of the Bureau of Reclamation (hereinafter called the Bureau), as provided for in section 2 (a), respecting the transmission and sale of electric energy generated at said project. The Secretary of War shall provide, construct, operate, maintain, and improve at Fort Peck project such machinery, equipment, and facilities for the generation of electric energy as the Bureau may deem necessary to develop such electric energy as rapidly as markets may be found therefor. The electric energy thus generated and not required for the operation of the dam at such project and the navigation facilities employed in connection therewith shall be delivered to the Bureau for disposition as provided in this Act. (52 Stat. 403; 16 U.S.C. § 833)

Sec. 2. [(a) Secretary of War to provide and maintain adequate station space and equipment required by Bureau; (b) Bureau to provide, operate, and maintain transmission lines; (c) Secretary of the Interior to acquire in name of United States necessary real and personal property; (d) Secretary of Interior to acquire necessary property including patent rights; and (e) Secretary of Interior to sell, lease, or dispose of personal property not required.]— (a) The electric energy generated in the operation of the said Fort Peck project shall be disposed of by the Bureau as hereinafter provided. The Bureau shall exercise the powers and perform the duties provided for in this Act under the supervision and direction of the Secretary of the Interior in accordance with the Act of May 26, 1926 (44 Stat. 657). The Bureau shall, as hereinafter provided, make all arrangements for the sale and disposition of electric energy generated at the Fort Peck project not required for the operation of the dam at such project and the navigation facilities employed in connection therewith. The form of administration herein established for the Fort Peck project is intended to be provisional pending the establishment of a permanent administration for Fort Peck and other projects in the Missouri River Basin. The Secretary of War shall install and maintain additional machinery, equipment, and facilities for the generation of electric energy at the Fort Peck project when in the judgment of the Bureau such additional generating facilities are desirable to meet actual or potential market requirements for such electric energy. The Secretary of War

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