An Act to authorize the Secretary of the Interior to construct, operate, and maintain the Tualatin Federal reclamation project, Oregon, and for other purposes
PL 89-596 (S.254), enacted 09/20/1966

822 
PUBLIC LAW 89.596-SEPT. 20, 1966 
[80 STAT. 
September 20, 1966 
[S. 254] 
Public Law 89-596 
AN ACT 
To authorize the Secretary of the Interior to construct, operate, and maintain 
the Tualatin Federal reclamation project, Oregon, and for other purposes. 
Tualatin Fed-
eral reclamation 
project, Oreg. 
43 u s e 391 
note. 
Repayment 
period. 
16 u s e 460/-
12 note. 
43 u s e 485a. 
43 u s e 48 5h. 
Interest rate, de-
termination by 
Secretary. 
33 u s e 701i-l. 
Be it enacted hy the Senate and House of Representatwes 
of the 
United States of America in Congress assembled^ That in order to 
supply irrigation water to approximately seventeen thousand acres 
of land in the Tualatin River Valley, Oregon, to develop municipal 
and industrial water supplies, to provide facilities for river regulation 
and control of floods, to enhance recreation opportunities, to provide 
for the conservation and development of fish and wildlife resources, 
and for other purposes, the Secretary of the Interior is authorized to 
construct, operate, and maintain the Tualatin Federal reclamation 
project in accordance with the Federal reclamation laws (Act of 
Jiine 17, 1902 (32 Stat. 388), and Acts amendatory thereof and sup-
plementary thereto). 
The principal features of the said project shall 
be a dam and reservoir on Scoggin Creek, canals, pumping plants and 
water distribution facilities. 
SEC, 2. Irrigation repayment contracts shall provide, with respect 
to any contract unit, for repayment of the irrigation construction costs 
assigned for repayment to the irrigators over a period of not more than 
fifty yeai*s exclusive of any development period authorized by law. 
Construction costs allocated to irrigation beyond the ability of the 
irrigators to repay during the repayment period shall be returned to 
the reclamation fund within said repayment period from revenues 
derived by the Secretary from the disposition of power marketed 
through the Bonneville Power Administration. 
Power and energy 
required for irrigation water pumping for the Tualatin project shall 
be made available by the Secretary from the Federal Columbia River 
power system at charges determined by him. 
SEC. 3. The conservation and development of the fish and wildlife 
resources and the enhancement of recreation opportunities in connec-
tion with the Tualatin project shall be in accordance with the pro-
visions of the Federal Water Project Recreation Act (79 Stat. 213). 
SEC. 4. (a) Costs of the project allocated to municipal w:ater sup-
ply shall be repayable, with interest, by the municipal water users 
over a period of not more than fifty years from the date that water is 
first delivered for that purpose, pursuant to contracts with municipal 
corporations, or other organizations, as defined in section 2(g) of the 
Reclamation Project Act of 1039 (53 Stat. 1187). Contracts may be 
entered into with water users' organizations pursuant to the provisions 
of this Act without regard to the last sentence of subsection 9(c) of 
the Reclamation Project Act of 1939, suj)ra. 
(b) The interest rate used for computing interest during construc-
tion and interest on the unpaid balance of the costs of the project 
allocated to municipal water supply shall be determined by the Sec-
retary of the Treasury, as of the beginning of the fiscal year in which 
construction is commenced, on the basis of the computed average 
interest rate payable hj the Treasury upon its outstanding marketable 
public obligations which are neither due nor callable for redemption 
for fifteen years from date of issue, and by adjusting such interest rate 
to the nearest multiple of one-eighth of 1 per centum if the computed 
average interest rate is not a multiple of one-eighth of 1 per centum. 
(c) Costs of the project allocatea to highway transportation shall 
be nonreimbursable in accordance with section 208 of the Flood Con-
trol Act of 1962 (76 Stat. 1196). 
SEC. 5. For a period of ten years from the date of enactment of this 
Act, no water shall be delivered to any water user on the Tualatin 
80 
STAT.] 
PUBLIC LAW 89-597-SEPT. 21, 1966 
823 
project for the production on newly irrigated lands of any basic agri-
cultural commodity, as defined in the Agricultural Act of 1949, or any 
amendment thereof, if the total supply of such commodity for the mar-
keting year in which the bulk of the crop would normally be marketed 
is in excess of the normal supply as defined in section 301(b) (10) of 
the Agricultural Adjustment Act of 1938, as amended, unless the 
Secretary of Agriculture calls for an increase in production of such 
commodity in the interest of national security. 
SEC. 6. There is hereby authorized to be appropriated for the con-
struction of the Tualatin project the sum of $20,900,000 (January 1965 
prices) plus or minus such amounts, if any, as may be justified by 
reason of ordinary fluctuations in construction costs as indicated by 
engineering cost indexes applicable to the types of construction in-
volved therein, and, in addition thereto, such sums as may be required 
to operate and maintain said project. 
Approved September 20, 1966. 
63 Stat. 1051. 
7 u s e 14'1 
note. 
62 Stat. 1251. 
7 u s e 1301, 
Appropriation. 
Public Law 89-597 
AN ACT 
To provide for the more flexible regulation of maximum rates of interest or 
dividends payable by banks and certain other financial institutions on deposits 
or share accounts, to authorize higher reserve requirements on time deposits 
at member banks, to authorize open market operations in agency issues by 
the Federal Reserve banks, and for other purposes. 
September 2 1, 1966 
[H. R. 14026] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemibled, 
SECTION 1. The Secretary of the Treasury, the Board of Governors 
of the Federal Reserve System, the Board of Directors of the Federal 
Deposit Insurance Corporation, and the Federal Home Loan Bank 
Board, in implementation of their respective powers under existing 
law and this Act, shall take action to bring about the reduction of 
interest rates to the maximum extent feasible in the light of prevailing 
money market and general economic conditions. 
Banks. 
Interest rates, 
controls. 
RESERVES AND RATE CEILINGS—MEMBER 
BANKS 
SEC. 2. (a) Section 19 of the Federal Reserve Act is amended by 
striking the first six paragraphs (12 U.S.C. 461, 462, and 462b) and 
inserting: 
"(a) The Board is authorized for the purposes of this section to 
define the terms used in this section, to determine what shall be deemed 
a payment of interest, and to prescribe such regulations as it may deem 
necessary to effectuate the purposes of this section and to prevent 
evasions thereof. 
"(b) Every member bank shall maintain reserves against its 
deposits in such ratios as shall be determined by the affirmative vote of 
not less than four members of the Board within the following 
limitations: 
"(1) In the case of any member bank in a reserve city, the 
minimum reserve ratio for any demand deposit shall be not less 
than 10 per centum and not more than 22 per centum, except that 
the Board, either in individual cases or by regulation, on such 
basis as it may deem reasonable and appropriate in view of the 
character of business transacted by such bank, may make appli-
cable the reserve ratios prescribed for banks not in reserve cities. 
"(2) In the case of any member bank not in a reserve city, the 
40 Stat. 239.