§807 — Title 16 Conservation | U.S. Code

Summary

The United States can take over and run any licensed power project after at least two years’ written notice from the Commission. It may also take project property sooner if the licensee agrees. The government must pay the licensee’s net investment in the project, but not more than the fair value of what is taken, and must pay reasonable damage for any useful property left behind that is harmed by the taking. The government must also take on any contracts the licensee made that the Commission approved. The Commission will hold a hearing to decide the net investment and any damages. The payment cannot include the value of lands or rights the United States already licensed, or goodwill or future income, and land or water rights can only be valued at what they actually cost when bought. The right of the United States, any State, or a city to take a project by condemnation with just compensation is still allowed. During relicensing, any federal department or agency may ask the United States to take over a project under rules the Commission sets. If the Commission does not itself recommend a takeover, it must, when asked, delay the new license’s start for two years after it is issued (except for an annual license). That delay ends after two years unless the requesting agency or Congress ends it sooner. The Commission must tell Congress when it grants such a delay.

Title 16, §807

Conservation — Source: USLM XML via OLRC

(a)Upon not less than two years’ notice in writing from the commission the United States shall have the right upon or after the expiration of any license to take over and thereafter to maintain and operate any project or projects as defined in section 796 of this title, and covered in whole or in part by the license, or the right to take over upon mutual agreement with the licensee all property owned and held by the licensee then valuable and serviceable in the development, transmission, or distribution of power and which is then dependent for its usefulness upon the continuance of the license, together with any lock or locks or other aids to navigation constructed at the expense of the licensee, upon the condition that before taking possession it shall pay the net investment of the licensee in the project or projects taken, not to exceed the fair value of the property taken, plus such reasonable damages, if any, to property of the licensee valuable, serviceable, and dependent as above set forth but not taken, as may be caused by the severance therefrom of property taken, and shall assume all contracts entered into by the licensee with the approval of the Commission. The net investment of the licensee in the project or projects so taken and the amount of such severance damages, if any, shall be determined by the Commission after notice and opportunity for hearing. Such net investment shall not include or be affected by the value of any lands, rights-of-way, or other property of the United States licensed by the Commission under this chapter, by the license or by good will, going value, or prospective revenues; nor shall the values allowed for water rights, rights-of-way, lands, or interest in lands be in excess of the actual reasonable cost thereof at the time of acquisition by the licensee: Provided, That the right of the United States or any State or municipality to take over, maintain, and operate any project licensed under this chapter at any time by condemnation proceedings upon payment of just compensation is expressly reserved.

(b)In any relicensing proceeding before the Commission any Federal department or agency may timely recommend, pursuant to such rules as the Commission shall prescribe, that the United States exercise its right to take over any project or projects. Thereafter, the Commission, if its 11 So in original. Probably should be “it”. does not itself recommend such action pursuant to the provisions of section 800(c) of this title, shall upon motion of such department or agency stay the effective date of any order issuing a license, except an order issuing an annual license in accordance with the proviso of section 808(a) of this title, for two years after the date of issuance of such order, after which period the stay shall terminate, unless terminated earlier upon motion of the department or agency requesting the stay or by action of Congress. The Commission shall notify the Congress of any stay granted pursuant to this subsection.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1986—Subsec. (b). Pub. L. 99–495 struck out first sentence which read as follows: “No earlier than five years before the expiration of any license, the Commission shall entertain applications for a new license and decide them in a relicensing proceeding pursuant to the provisions of section 808 of this title.” 1968—Pub. L. 90–451 designated existing provisions as subsec. (a) and added subsec. (b). 1935—Act Aug. 26, 1935, § 207, amended section generally.

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–495 effective with respect to each license, permit, or exemption issued under this chapter after Oct. 16, 1986, see section 18 of Pub. L. 99–495, set out as a note under section 797 of this title.

§807 Right of Government to take over project works