§590z–7 Provisions for Furnishing Surplus Power and Municipal or Miscellaneous Water Supplies

Summary

Allows project authorities to provide extra water for towns or other uses and to develop extra electric power beyond irrigation needs. The Secretary can make contracts or sales for that water and surplus power. Money spent from the specific appropriation named in the law to pay for those municipal/miscellaneous water supplies or surplus power cannot be more than $500,000 for any one project. The Secretary must be sure such contracts will not weaken the project’s irrigation function. The Secretary will assign part of the project’s construction cost to those water or power uses, and those assigned costs are not counted as reimbursable construction costs under repayment contracts. The United States keeps ownership of the facilities and the revenues from them. Rates charged must at least cover the project’s share of yearly operation and maintenance costs and appropriate fixed charges, including interest. Power sales contracts may last up to 40 years; water contracts last for whatever periods the Secretary decides and may include renewals. Preference is given to cities, public agencies, and qualifying rural electric cooperatives or nonprofits. The Secretary may also lease power development rights to non‑Federal parties for projects under this law. Those leases must follow the processes, terms, and conditions used under section 485h(c) of title 43. The findings required by section 590z–1 are not needed for these leases. Generally, a lessee keeps ownership and direct revenues from power facilities it installs, except that lease charges must be credited back to the project that produced the power. Nothing here changes any hydropower agreements already in effect on December 19, 2014.