§590z–7 Provisions for furnishing surplus power and municipal or miscellaneous water supplies

Summary

Allows the Secretary to provide extra water for towns and other uses and to develop or sell power beyond what the project needs for irrigation. Money taken from the specific federal appropriation for these extra water or surplus power costs cannot be more than $500,000 for any one project. The Secretary must not make any water or power contract if it would hurt the project’s irrigation work. The Secretary will decide how much of the project’s construction cost is for municipal water or surplus power, and those amounts are not part of the repayment costs charged to irrigation users. The United States keeps ownership of the facilities and the money they earn. Prices in contracts must at least cover the project’s share of yearly operation and maintenance and any fixed charges, including interest. Surplus power sales can last up to 40 years. Water contracts can be for whatever term the Secretary chooses and can include renewal options. Preference in sales or leases goes to cities, public agencies, and to cooperatives or nonprofits helped by Rural Electrification Act loans. The Secretary may also make leases that let others build and run power facilities at these projects. These leases must follow the same leasing process, terms, and conditions used for similar federal leases. The usual findings that are sometimes required are not needed for these leases. Normally, facilities built by nonfederal lessees and the direct revenues they earn stay with the lessee, but lease charges must be credited back to the project that produced the power. Existing hydropower development or revenue agreements in effect on December 19, 2014 remain unchanged.