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(f) To prescribe rules and regulations for the estab- Prescribe rules lishment of a system of accounts and for the maintenance operating, etc. thereof by licensees hereunder; to examine all books and accounts of such licensees at any time; to require them to submit at such time or times as the commission may require statements and reports, including full information as to assets and liabilíties, capitalization, net investment and reduction thereof, gross receipts, interest due and paid, depreciation and other reserves, cost of project, cost of maintenance and operation of the project, cost of renewals and replacements of the project works, and as to depreciation of the project works and as to production, transmission, use and sale of power; also to require any licensee to make adequate provision for currently determining said costs and other facts. All such statements Verification. and reports shall be made upon oath, unless otherwise specified, and in such form and on such blanks as the commission may require. Any person who, for the pur-Punishment for
false pose of deceiving, makes or causes to be made
false entry in the books or the accounts of such licensee, and any person who, for the purpose of deceiving, makes or causes to be made any false statement or report in response to a request or order or direction from the commission for the statements and report herein referred to shall, upon conviction, be fined not more than $2,000 or imprisoned not more than five years, or both.
(g) To hold hearings and to order testimony to be inConduct hear. taken by deposition at any designated place in connec-sitions, etc. tion with the application for any permit or license, or the regulation of rates, service, or securities, or the making of any investigation, as provided in this Act; and to require by subpæna, signed by any member of the commission, the attendance and testimony of witnesses and the production of documentary evidence from any place in the United States, and in case of disobedience to à subpæna the commission may invoke the aid of any Aid of Federal court of the United States in requiring the attendance
courts. and testimony of witnesses and the production of documentary evidence. Any member, expert, or examiner Administer of the commission may, when duly designated by the oaths, etc. commission for such purposes, administer oaths and affirmations, examine witnesses and receive evidence. Depositions may be taken before any person designated by the commission or by its executive secretary and empowered to administer oaths, shall be reduced to writing by such person or under his direction, and subscribed by the deponent. Witnesses summoned before the commis Witnees fees, sion shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses whose depositions are taken and persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States.
Other neces. sary powers.
(h) To perform any and all acts, to make such rules and regulations, and to issue such orders not inconsistent with this Act as may be necessary and proper for the
purpose of carrying out the provisions of this Act. Preliminary permits.
SEC. 5. That each preliminary permit issued under Issue of, to ob- this Act shall be for the sole purpose of maintaining tain proirity for
priority of application for a license under the terms of this Act for such period or periods, not exceeding a total of three years, as in the discretion of the commission may be necessary for making examinations and surveys,
for preparing maps, plans, specifications, and estimates, Conditions.
and for making financial arrangements. Each such permit shall set forth the conditions under which priority shall be maintained and a license issued. Such permits shall not be transferable, and may be canceled by order of the commission upon failure of permittees to comply with the conditions thereof.
SEC. 6. That licenses under this Act shall be issued for conditions con- a period not exceeding fifty years. Each such license
shall be conditioned upon acceptance by the licensee of all the terms and conditions of this Act and such further conditions, if any, as the commission shall prescribe in conformity with this Act, which said terms and condi
tions and the acceptance thereof shall be expressed in Revocation, etc. said license. Licenses may be revoked only for the rea
sons and in the manner prescribed under the provisions of this Act, and may be altered or surrendered only upon mutual agreement between the licensee and the commis.
sion after ninety days' public notice. Preferences to State, etc., appli
Sec. 7. That in issuing preliminary permits hereunder or licenses where no preliminary permit has been issued and in issuing licenses to new licensees under section 15 hereof the commission shall give preference to applications therefor by States and municipalities, provided the plans for the same are deemed by the commission equally well adapted, or shall within a reasonable time to be fixed by the commission be made equally well adapted, to conserve and utilize in the public interest the navigation
and water resources of the region; and as between other applicants.
applicants, the commission may give preference to the applicant the plans of which it finds and determines are best adapted to develop, conserve, and utilize in the public interest the navigation and water resources of the region, if it be satisfied as to the ability of the applicant
to carry out such plans. Action if Com.
That whenever, in the judgment of the commission, the Government development of any project should be undertaken by the project.
United States itself, the commission shall not approve any application for such project by any citizen, association, corporation, State, or municipality, but shall cause to be made such examinations, surveys, reports, plans, and estimates of the cost of the project as it may deem necessary, and shall submit its findings to Congress with such
Great Falls of
Increase of wa
Transfers of li.
recommendations as it may deem appropriate concerning the construction of such project or completion of any project upon any Government dam by the United States.
The commission is hereby authorized and directed to investigate and, on or before the 1st day of January, 1921, the Potomac report to Congress the cost and, in detail, the economic Investigation of value of the power plant outlined in project numbered cost, etes of
power plant, etc., 3, House Document numbered 1400, Sixty-second Con-at. gress, third session, in view of existing conditions, utilizing such study as may heretofore have been made by any department of the Government; also in connection with such project to submit plans and estimates of cost necessary to secure an increased and adequate water supply for the District of Columbia. For this purpose the ter supply, Dios. sum of $25,000, or so much thereof as may be necessary, is hereby appropriated.
Seo. 8. That no voluntary transfer of any license, or of the rights thereunder granted, shall be made without censes, etc., re
. the written approval of the commission; and any successor or assign of the rights of such licensee, whether by voluntary transfer, judicial sale, foreclosure sale, or otherwise, shall be subject to all the conditions of the license under which such rights are held by such licensee and also subject to all the provisions and conditions of this Act to the same extent as though such successor or assign were the original licensee hereunder: Provided, Proriso. That a mortgage or trust deed or judicial sales made
excepted. thereunder or under tax sales shall not be deemed voluntary transfers within the meaning of this section.
Sec. 9. That each applicant for a license hereunder Application re shall submit to the commission
quirements. (a) Such maps, plans, specifications, and estimates of cost as may be required for a full understanding of the plans, etc. proposed project. Such maps, plans, and specifications when approved by the commission shall be made a part of the license; and thereafter no change shall be made in said maps, plans, or specifications until such changes shall have been approved and made a part of such license by the commission.
(b) Satisfactory evidence that the applicant has com Compliance plied with the requirements of the laws of the State or States within which the proposed project is to be located with respect to bed and banks and to the appropriation, diversion, and use of water for power purposes and with respect to the right to engage in the business of developing, transmitting, and distributing power, and in any other business necessary to effect the purposes of a license under this Act.
(c) Such additional information as the commission may require. SEC. 10. That all licenses issued under this Act shall
licenses. be on the following conditions:
with State laws.
Project adapt. ed to utilize nay.
(a) That the project adopted, including the maps, igation, water plans, and specifications, shall be such as in the judgment
of the commission will be best adapted to a comprehensive scheme of improvement and utilization for the purposes of navigation, of water-power development, and of other beneficial public uses; and if necessary in order to secure such scheme the commission shall have authority to require the modification of any project and of the plans
and specifications of the project works before approval. Restriction on alterations.
(b) That except when emergency shall require for the protection of navigation, life, health, or property, no substantial alteration or addition not in conformity with the approved plans shall be made to any dam or other project works constructed hereunder of a capacity in excess of one hundred horsepower without the prior approval of the commission; and any emergency alteration or addition so made shall thereafter be subject to such modifi
cation and change as the commission may direct. Project works (c) That the licensee shall maintain the project works to be maintained in effective oper- in a condition of repair adequate for the purposes of
navigation and for the efficient operation of said works in the development and transmission of power, shall make all necessary renewals and replacements, shall establish and maintain adequate depreciation reserves for such purposes, shall so maintain and operate said works as not to impair navigation, and shall conform to such rules and regulations as the commission may from time to time pre
scribe for the protection of life, health, and property. Liability for Each licensee hereunder shall be liable for all damages damages to prop. occasioned to the property of others by the construction,
maintenance, or operation of the project works or of the works appurtenant or accessory thereto, constructed under the license, and in no event shall the United States be
liable therefor. Amortization (d) That after the first twenty years of operation out reserves to be established. of surplus earned thereafter, if any, accumulated in exDisposition of. cess
ied reasonable rate of return upon the actual, legitimate investment of a licensee in any project or projects under license the licensee shall establish and maintain amortization reserves, which reserves shall, in the discretion of the commission, be held until the termi
nation of the license or be applied from time to time in Rate to be reduction of the net investment. Such specified rate of specified in N.
return and the proportion of such surplus earnings to be paid into and held in such reserves shall be set forth in
the license. Annual charges. (e) That the licensee shall pay to the United States Basis of.
reasonable annual charges in an amount to be fixed by the commission for the purpose of reimbursing the United States for the costs of the administration of this Act; for recompensing it for the use, occupancy, and enjoyment of its lands or other property; and for the expropriation to the Government of excessive profits until the re
spective States shall make provision for preventing excessive profits or for the expropriation thereof to themselves, Price to conor until the period of amortization as herein provided is reached, and in fixing such charges the commission shall seek to avoid increasing the price to the consumers of power by such charges, and charges for the expropriation of excessive profits may be adjusted from time to time by the commission as conditions may require: Provided, That when licenses are issued involving the use of Gov. ernment dams or other structures owned by the United or Indian tribal States or tribal lands embraced within Indian reservations the commission shall fix a reasonable annual charge for the use thereof, and such charges may be readjusted at the end of twenty years after the beginning of operations and at periods of not less than ten years thereafter in a manner to be described in each license: Provided,
No charge to That licenses for the development, transmission, or dis- States, etc tribution of power by States or municipalities shall be public Issued and enjoyed without charge to the extent such profit, etc. power is sold to the public without profit or is used by such State or municipality for State or municipal purposes, except that as to projects constructed or to be constructed by States or municipalities primarily designed to provide or improve navigation licenses therefor shall be issued without charge; and that licenses for the devel Small projects. opment, transmission, or distribution of power for domestic, mining, or other beneficial use in projects of not more than one hundred horsepower capacity may be issued without charge, except on tribal lands within In
Exceptions. dian reservations; but in no case shall a license be issued free of charge for the development and utilization of Government dam. power created by any Government dam and that the amount charged therefor in any license shall be such as determined by the commission.
(f) That whenever any licensee hereunder is directly Payment by libenefited by the construction work of another licensee, eens te weekende a permittee, or of the United States of a storage reser- another. voir or other headwater improvement, the commission shall require as a condition of the license that the licensee so benefited shall reimburse the owner of such reservoir or other improvement for such part of the annual charges for interest, maintenance, and depreciation thereon as the commission may deem equitable. The proportion of such charges to be paid by any licensee shall be determined by the commission.
Whenever such reservoir or other improvement is constructed by the United States the commission shall Government conassess similar charges against any licensee directly bene
struction. fited thereby, and any amount so assessed shall be paid into the Treasury of the United States, to be reserved and appropriated as a part of the special fund for headwater improvements as provided in section 17 hereof.
(g) Such further conditions not inconsistent with the provisions of this Act as the commission may require.
No free use of