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Title 16, ConservationRelease 119-102

§806 Time Limit for Construction of Project Works; Extension of Time; Termination or Revocation of Licenses for Delay

Title 16 › CHAPTER 12 — FEDERAL REGULATION AND DEVELOPMENT OF POWER › SUBCHAPTER I — REGULATION OF THE DEVELOPMENT OF WATER POWER AND RESOURCES › § 806

Last updated Aug 21, 2026|Official source

Summary

License holders must begin building the project within the time set in their license, which cannot be more than two years after the license date. After starting, they must keep working in good faith and with reasonable effort to finish the parts the commission says are needed to meet the market, and then build additional parts as the commission directs until the whole project is done. The commission can extend the start deadline by up to 8 more years, and can extend completion deadlines when that does not conflict with the public interests. If the holder does not start on time, the commission will give notice and can cancel the license for those works. If work is started but not finished on time, the Attorney General, at the commission’s request, will ask a federal district court to revoke the license, order sale of what was built, and seek other court-ordered relief under section 820.

Full Legal Text

Title 16, §806

Conservation, Source: USLM XML via OLRC

The licensee shall commence the construction of the project works within the time fixed in the license, which shall not be more than two years from the date thereof, shall thereafter in good faith and with due diligence prosecute such construction, and shall within the time fixed in the license complete and put into operation such part of the ultimate development as the commission shall deem necessary to supply the reasonable needs of the then available market, and shall from time to time thereafter construct such portion of the balance of such development as the commission may direct, so as to supply adequately the reasonable market demands until such development shall have been completed. The periods for the commencement of construction may be extended for not more than 8 additional years, and the period for the completion of construction carried on in good faith and with reasonable diligence may be extended by the commission when not incompatible with the public interests. In case the licensee shall not commence actual construction of the project works, or of any specified part thereof, within the time prescribed in the license or as extended by the commission, then, after due notice given, the license shall, as to such project works or part thereof, be terminated upon written order of the commission. In case the construction of the project works, or of any specified part thereof, has been begun but not completed within the time prescribed in the license, or as extended by the commission, then the Attorney General, upon the request of the commission, shall institute proceedings in equity in the district court of the United States for the district in which any part of the project is situated for the revocation of said license, the sale of the works constructed, and such other equitable relief as the case may demand, as provided for in section 820 of this title.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Proceedings in equity, referred to in text, were abolished by the adoption of rule 2 of the Federal Rules of Civil Procedure, set out in the Appendix to Title 28, Judiciary and Judicial Procedure, which provided that “there shall be one form of action to be known as ‘civil action’ ”.

Amendments

2018—Pub. L. 115–270 substituted “for not more than 8 additional years,” for “once but not longer than two additional years” in second sentence.

Statutory Notes and Related Subsidiaries

Extension of Time To Commence

Construction

of Certain Hydropower Projects Pub. L. 119–90, May 11, 2026, 140 Stat. 820, provided that: “section 1. EXTENSION OF TIME TO COMMENCE

Construction

OF CERTAIN HYDROPOWER PROJECTS.“(a) Definition of Covered Project.—In this section, the term ‘covered project’ means a hydropower project with respect to which the Federal Energy Regulatory Commission issued a license before March 13, 2020. “(b) Authorization of Extension.—Notwithstanding section 13 of the Federal Power Act (16 U.S.C. 806), on the request of a licensee of a covered project, the Federal Energy Regulatory Commission may, after reasonable notice and for good cause shown, extend in accordance with subsection (c) the period during which the licensee is required to commence

Construction

of the covered project for not more than an additional 6 years beyond the 8 years authorized by that section. “(c) Period of Extension.—An extension of time to commence

Construction

of a covered project under subsection (b) shall—“(1) consist of not more than 3 consecutive 2-year periods; “(2) begin on the date on which the final extension of the period for commencement of

Construction

granted to the licensee under section 13 of the Federal Power Act (16 U.S.C. 806) expires; and “(3) end on the date that is not more than 6 years after the latest date to which the Federal Energy Regulatory Commission is authorized to extend the period for commencement of

Construction

under that section. “(d) Reinstatement of Expired License.—If the time period required under section 13 of the Federal Power Act (16 U.S.C. 806) to commence

Construction

of a covered project expires after
December 31, 2023, and before the date of enactment of this Act [
May 11, 2026]—“(1) the Federal Energy Regulatory Commission may reinstate the license for the applicable project effective as of the date of expiration of the license; and “(2) the extension authorized under subsection (b) shall take effect on the date of that expiration.”

Reference

Citations & Metadata

Citation

16 U.S.C. § 806

Title 16, Conservation

Last Updated

Aug 21, 2026

Release point: 119-102