-CITE-


    16 USC Sec. 832c                                             01/26/98

-EXPCITE-


    TITLE 16 - CONSERVATION


    CHAPTER 12B - BONNEVILLE PROJECT

-HEAD-


    Sec. 832c. Distribution of electricity; preference to public bodies


        and cooperatives

-STATUTE-


    (a) General provisions


      In order to insure that the facilities for the generation of


    electric energy at the Bonneville project shall be operated for the


    benefit of the general public, and particularly of domestic and


    rural consumers, the administrator shall at all times, in disposing


    of electric energy generated at said project, give preference and


    priority to public bodies and cooperatives.


    (b) Prior to January 1, 1942; subsequent thereto


      To preserve and protect the preferential rights and priorities of


    public bodies and cooperatives as provided in subsection (a) of


    this section and to effectuate the intent and purpose of this


    chapter that at all times up to January 1, 1942, there shall be


    available for sale to public bodies and cooperatives not less than


    50 per centum of the electric energy produced at the Bonneville


    project, it shall be the duty of the administrator in making


    contracts for the sale of such energy to so arrange such contracts


    as to make such 50 per centum of such energy available to said


    public bodies and cooperatives until January 1, 1942: Provided,


    That the electric energy so reserved for but not actually purchased


    by and delivered to such public bodies and cooperatives prior to


    January 1, 1942, may be disposed of temporarily so long as such


    temporary disposition will not interfere with the purchase by and


    delivery to such public bodies and cooperatives at any time prior


    to January 1, 1942: Provided further, That nothing herein contained


    shall be construed to limit or impair the preferential and priority


    rights of such public bodies or cooperatives after January 1, 1942;


    and in the event that after such date there shall be conflicting or


    competing applications for an allocation of electric energy between


    any public body or cooperative on the one hand and a private agency


    of any character on the other, the application of such public body


    or cooperative shall be granted.


    (c) Allowance of time for financing


      An application by any public body or cooperative for an


    allocation of electric energy shall not be denied, or another


    application competing or in conflict therewith be granted, to any


    private corporation, company, agency, or person, on the ground that


    any proposed bond or other security issue of any such public body


    or cooperative, the sale of which is necessary to enable such


    prospective purchaser to enter into the public business of selling


    and distributing the electric energy proposed to be purchased, has


    not been authorized or marketed, until after a reasonable time, to


    be determined by the administrator, has been afforded such public


    body or cooperative to have such bond or other security issue


    authorized or marketed.


    (d) Congressional declaration of policy; allowance of time for


        creation and organization


      It is declared to be the policy of the Congress, as expressed in


    this chapter, to preserve the said preferential status of the


    public bodies and cooperatives herein referred to, and to give to


    the people of the States within economic transmission distance of


    the Bonneville project reasonable opportunity and time to hold any


    election or elections or take any action necessary to create such


    public bodies and cooperatives as the laws of such States authorize


    and permit, and to afford such public bodies or cooperatives


    reasonable time and opportunity to take any action necessary to


    authorize the issuance of bonds or to arrange other financing


    necessary to construct or acquire necessary and desirable electric


    distribution facilities, and in all other respects legally to


    become qualified purchasers and distributors of electric energy


    available under this chapter.

-SOURCE-


    (Aug. 20, 1937, ch. 720, Sec. 4, 50 Stat. 733; Mar. 6, 1940, ch.


    47, Sec. 3, 54 Stat. 47.)

-MISC1-


                                 AMENDMENTS


      1940 - Subsec. (b). Act Mar. 6, 1940, substituted ''January 1,


    1942'' for ''January 1, 1941'' wherever appearing.

-TRANS-


                           TRANSFER OF FUNCTIONS


      Functions of Secretary of the Interior with respect to Bonneville


    Power Administration transferred to Secretary of Energy by section


    7152(a)(1)(D), (2) of Title 42, The Public Health and Welfare, with


    Bonneville Power Administration to be preserved as a distinct


    organizational entity within Department of Energy and headed by an


    Administrator.

-SECREF-


                   SECTION REFERRED TO IN OTHER SECTIONS


      This section is referred to in section 839c of this title.