§ 590z-7. — Provisions for furnishing surplus power and municipal or miscellaneous water supplies.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC590z-7]
TITLE 16--CONSERVATION
CHAPTER 3C--WATER CONSERVATION
SUBCHAPTER II--CONSERVATION AND UTILIZATION PROJECTS
Sec. 590z-7. Provisions for furnishing surplus power and
municipal or miscellaneous water supplies
In connection with any project undertaken pursuant to this
subchapter, provisions, including contracts of sale, may be made for
furnishing municipal or miscellaneous water supplies, or for developing
and furnishing power in addition to the power requirements of
irrigation: Provided, That expenditures from appropriations made
directly pursuant to the authority contained in section 590z-10(1) of
this title to meet costs allocated to municipal or miscellaneous water
supplies or surplus power shall not exceed $500,000 for any one project:
Provided further, That no contract relating to a water supply for
municipal or miscellaneous purposes or to electric power shall be made
unless, in the judgment of the Secretary, it will not impair the
efficiency of the project for irrigation purposes. On any project where
such provisions are made, the Secretary shall allocate to municipal or
miscellaneous water purposes or to surplus power the part of the
estimated construction costs of the project which he deems properly so
allocable; and such allocations shall not be included in the
reimbursable construction costs covered by the repayment contract or
contracts required under section 590z-2 of this title. All right, title,
and interest in the facilities provided for such municipal or
miscellaneous water supplies or surplus power and the revenues derived
therefrom shall be and remain in the United States. Contracts for such
municipal or miscellaneous water supplies or for such surplus power
shall be at such rates as, in the Secretary's judgment, will produce
revenues at least sufficient to cover the appropriate share of the
annual operation and maintenance cost of the project and such fixed
charges, including interest, as the Secretary deems proper. Contracts
for the sale of surplus power shall be for periods not to exceed forty
years and contracts for water supply for municipal or miscellaneous
purposes shall be for such periods as the Secretary may determine and
may include such renewal options as the Secretary deems desirable: And
provided further, That in sales or leases of such power, preference
shall be given to municipalities and other public corporations or
agencies; and also to cooperatives and other nonprofit organizations
financed in whole or in part by loans made pursuant to the Rural
Electrification Act of 1936 [7 U.S.C. 901 et seq.] and any amendments
thereof.
(Aug. 11, 1939, ch. 717, Sec. 9, as added Oct. 14, 1940, ch. 861, 54
Stat. 1124.)
References in Text
The Rural Electrification Act of 1936, referred to in text, is act
May 20, 1936, ch. 432, 49 Stat. 1363, as amended, which is classified
generally to chapter 31 (Sec. 901 et seq.) of Title 7, Agriculture. For
complete classification of this Act to the Code, see section 901 of
Title 7 and Tables.
Section Referred to in Other Sections
This section is referred to in section 590z-6 of this title.
