
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 16USC590z-7]

 
                         TITLE 16--CONSERVATION
 
                     CHAPTER 3C--WATER CONSERVATION
 
          SUBCHAPTER II--CONSERVATION AND UTILIZATION PROJECTS
 
Sec. 590z-7. Provisions for furnishing surplus power and 
        municipal or miscellaneous water supplies
        
    In connection with any project undertaken pursuant to this 
subchapter, provisions, including contracts of sale, may be made for 
furnishing municipal or miscellaneous water supplies, or for developing 
and furnishing power in addition to the power requirements of 
irrigation: Provided, That expenditures from appropriations made 
directly pursuant to the authority contained in section 590z-10(1) of 
this title to meet costs allocated to municipal or miscellaneous water 
supplies or surplus power shall not exceed $500,000 for any one project: 
Provided further, That no contract relating to a water supply for 
municipal or miscellaneous purposes or to electric power shall be made 
unless, in the judgment of the Secretary, it will not impair the 
efficiency of the project for irrigation purposes. On any project where 
such provisions are made, the Secretary shall allocate to municipal or 
miscellaneous water purposes or to surplus power the part of the 
estimated construction costs of the project which he deems properly so 
allocable; and such allocations shall not be included in the 
reimbursable construction costs covered by the repayment contract or 
contracts required under section 590z-2 of this title. All right, title, 
and interest in the facilities provided for such municipal or 
miscellaneous water supplies or surplus power and the revenues derived 
therefrom shall be and remain in the United States. Contracts for such 
municipal or miscellaneous water supplies or for such surplus power 
shall be at such rates as, in the Secretary's judgment, will produce 
revenues at least sufficient to cover the appropriate share of the 
annual operation and maintenance cost of the project and such fixed 
charges, including interest, as the Secretary deems proper. Contracts 
for the sale of surplus power shall be for periods not to exceed forty 
years and contracts for water supply for municipal or miscellaneous 
purposes shall be for such periods as the Secretary may determine and 
may include such renewal options as the Secretary deems desirable: And 
provided further, That in sales or leases of such power, preference 
shall be given to municipalities and other public corporations or 
agencies; and also to cooperatives and other nonprofit organizations 
financed in whole or in part by loans made pursuant to the Rural 
Electrification Act of 1936 [7 U.S.C. 901 et seq.] and any amendments 
thereof.

(Aug. 11, 1939, ch. 717, Sec. 9, as added Oct. 14, 1940, ch. 861, 54 
Stat. 1124.)

                       References in Text

    The Rural Electrification Act of 1936, referred to in text, is act 
May 20, 1936, ch. 432, 49 Stat. 1363, as amended, which is classified 
generally to chapter 31 (Sec. 901 et seq.) of Title 7, Agriculture. For 
complete classification of this Act to the Code, see section 901 of 
Title 7 and Tables.

                  Section Referred to in Other Sections

    This section is referred to in section 590z-6 of this title.
