An Act to enable the Secretary of the Interior to provide for the operation, maintenance and continued construction of the Federal transmission system in the Pacific Northwest by use of the revenues of the Federal Columbia River Power System and the proceeds of revenue bonds, and for other purposes.
PL 93-454 (S.3362), enacted 10/18/1974

1376 
PUBLIC LAW 93-454-OCT. 18, 1974 
[88 STAT. 
Public Law 93-454 
October 18. 1974 
^ ^ ACT 
[S-3362] 
To enable the Secretary of the Interior to provide for the operation, maintenance, 
and continued construction of the Federal transmission system in the Pacific 
Northwest by use of the revenues of the Federal Columbia River Power 
System and the proceeds of revenue bonds, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ 
Federal Colum' 
bia River Trans-
mission System 
Act. 
SHORT TITLE 
note 
835m. 
1
6 use 838 
SECTION 1. This Act may be cited as the "Federal Columbia Elver 
Transmission System Act". 
FINDINGS 
1
6 use 838. 
'^Yjc. 
2. (a) Congress finds that in order to enable the Secretary of 
1
6 use 837. 
i-j^g Interior to carry out the policies of Public Law 88-552 relating 
to the marketing of electric power, from hydroelectric projects in the 
16 use 835j- 
Pacific Northwest, Public Laws 89-448 and 89-561 relating to use 
of revenues of the Federal Columbia River Power System to provide 
financial assistance to reclamation projects in,the Pacific Northwest, 
the treaty between the United States and Canada relating to the 
cooperative development of the resources of the Columbia River 
Basin, and other applicable law, it is desirable and appropriate that the 
revenues of the Federal Columbia River Power System and the pro-
ceeds of revenue bonds be used to further the operation, maintenance, 
and further construction of the Federal transmission system in the 
Pacific Northwest. 
(b) Other than as specifically provided herein, the present author-
ity and duties of the Secretary of the Interior relating to the Federal 
Columbia River Power System shall not be affected by this Act. The 
authority and duties of the Administrator referred to herein are sub-
ject to the supervision and direction of the Secretary. 
DEFINITIONS 
16 use 838a. 
SEC. 3. As used iu this Act— 
(a) The term "Administrator" means the Administrator, 
Bonneville Power Administration. 
(b) The term "electric power" means electric peaking capacity 
or electric energy, or both. 
(c) The term "major transmission facilities" means transmis-
sion facilities intended to be used to provide services not pre-
viously provided by the Bonneville Power Administration with 
its own facilities. 
16 use 838b. 
THE FEDERAL COLUMBIA RTVER TRANSMISSION SYSTEM 
SEC. 4. The Secretary of the Interior, acting by and through the 
Administrator, shall operate and maintain the Federal transmission 
system within the Pacific Northwest and shall construct improvements, 
betterments, and additions to and replacements of such system within 
the Pacific Northwest as he determines are appropriate and required to: 
(a) integrate and transmit the electric power from existing or 
additional Federal or non-Federal generating units; 
(b) provide service to the Administrator's customers; 
(c) provide interregional transmission facilities; or 
88 STAT. ] 
PUBLIC LAW 93-454-OCT. 18, 1974 
1377 
(d) maintain the electrical stability and electrical reliability 
of the Federal system: Provided, however, That the Administrator 
shall not construct any transmission facilities outside the Pacific 
Northwest, excepting customer service facilities within any con-
tiguous areas, not in excess of seventy-five airline miles from said 
region, which are a part of the service area of a distribution 
cooperative which has (i) no generating facilities, and (ii) a dis-
tribution system from which it serves both within and without 
said region, nor shall he commence construction of any major 
transmission facility within the Pacific Northwest, unless the 
expenditure of the funds for the initiation of such construction is 
specifically approved by Act of Congress. 
16 u s e 838c. 
CONGRESSIONAIJ APPROVAL OF EXPENDITURES 
SEC. 5. (a) Unless specifically authorized by Act of Congress, the 
Administrator shall not expend funds made available under this Act, 
other than funds specifically appropriated by the Congress for such 
purpose, to acquire any operating transmission facility oy condemna-
tion: Provided, That this provision shall not restrict the acquisition 
of the right to cross such a facility by condemnation. 
(b) At least sixty days prior to the time a request for approval or 
authority under section 4 or 5 of this Act is sent to Congress, the 
Administrator shall give notice of such request to entities in the Pacific 
Northwest with which the Administrator has power sales or exchange 
contracts or transmission contracts or which have a transmission inter-
connection with the Federal transmission system. 
TRANSMISSION OF NON-FEDERAL POWER 
SEC. 6. The Administrator shall make available to all utilities on a 
fair and nondiscriminatory basis, any capacity in the Federal trans-
mission system which he determines to be in excess of the capacity 
required to transmit electric power generated or acquired by the 
United States. 
ACQUISITION OF PROPERTY 
SEC. 7. Subject to the provisions of section 5 of this Act the Admin- 
^^ ^^^ ^3^^-
istrator may purchase or lease or otherwise acquire and hold such real 
and personal property in the name of the United States as he deems 
necessary or appropriate to carry out his duties pursuant to law. 
16 u s e 838d. 
16 u s e 838f. 
MARKETING AUTHORITY 
SEC 8. The Administrator is hereby designated as the marketing 
agent for all electric power generated by Federal generating plants 
in the Pacific Northwest, constructed by, under construction by, or 
presently authorized for construction by the Bureau of Reclamation or 
the United States Corps of Engineers except electric power required 
for the operation of each Federal project and except electric power 
from the Green Springs project of the Bureau of Reclamation. 
RATES AND CHARGES 
SEC. 9. Schedules of rates and charges for the sale, including dis- 
^^ "^^ *^*^" 
positions to Federal agencies, of all electric power made available to 
the Administrator pursuant to section 8 of this Act or otherwise 
acquired, and for the transmission of non-Federal electric power over 
1378 
PUBLIC LAW 93-454-OCT. 18, 1974 
[88 STAT. 
the Federal transmission system, shall become effective upon con-
firmation and approval thereof by the Federal Power Commission. 
Such rate schedules may be modified from time to time by the Secre-
tary of the Interior, actmg by and through the Administrator, subject 
to confirmation and approval by the Federal Power Commission, and 
shall be fixed and established (1) wath a view to encouraging the 
widest possible diversified use of electric power at the lowest possible 
rates to consumers consistent with sound business principles, (2) 
having regard to the recovery (upon the basis of the application of 
such rate schedules to the capacity of the electric facilities of the 
projects) of the cost of producing and transmitting such electric 
power, including the amortization of the capital investment allocated 
to power over a reasonable period of years and payments provided for 
in section 11(b) (9), and (3) at levels to produce such additional reve-
nues as may be required, in the aggregate with all other revenues of 
the Administrator, to pay when due the principal of, premiums, 
discounts, and expenses in connection w^ith the issuance of and interest 
on all bonds issued and outstanding pursuant to this Act, and amounts 
required to establish and maintain reserve and other funds and 
accounts established in connection therewith. 
UNIFORM RATES 
16 use 838h. 
Establishment. 
16 use 8381. 
3 ePR, 1938-
1943 eomp.,p. 704. 
16 use 832j. 
SEC. 10. The said schedules of rates and charges for transmission, 
the said schedules of rates and charges for the sale of electric power, 
or both such schedules, may provide, among other things, for uniform 
rates or rates uniform throughout prescribed transmission areas. The 
recovery of the cost of the Federal transmission system shall be 
equitably allocated between Federal and non-Federal power utilizing 
such system. 
BONNEVIIXE POWER ADMINISTRATION FUND 
SEC. 11. (a) There is hereby established in the Treasury of the 
United States a Bonneville Power Administration fund (hereinafter 
referred to as the "fund"). The fund shall consist of (1) all receipts, 
collections, and recoveries of the Administrator in cash from all 
sources, including trust funds, (2) all proceeds derived from the sale 
of bonds by the Administrator, (3) any appropriations made by the 
Congress for the fund, and (4) the following funds which are hereby 
transferred to the Administrator: (i) all moneys in the special 
account in the Treasury established pursuant to Executive Order 
Numbered 8526 dated August 26, 1940, (ii) the unexpended balances 
in the continuing fund established by the provisions of section 11 of 
the Bonneville Project Act of August 20,1937 (16 U.S.C. 831 et seq^.), 
and (iii) the unexpended balances of funds appropriated or otherwise 
made available for the Bonneville Power Aaministration. All funds 
transferred hereunder shall be available for expenditure by the Secre-
tary of the Interior, acting by and through the Administrator, as 
authorized in this Act and any other Act relating to the Federal 
Columbia Kiver transmission system, subject to such limitations as may 
bfe j)rescribed by any applicable appropriation act effective during such 
period as may elapse between their transfer and the approval by the 
Congress of the first subsequent annual budget program of the 
Administrator. 
(b) The Administrator may make expenditures from the fund, 
which shall have been included in his annual budget submitted to 
Congress, without further appropriation and without fiscal year limi-
88 STAT. ] 
PUBLIC LAW 93^54-OCT. 18, 1974 
1379 
tation, but within such specific directives or limitations as may be 
included in appropriation acts, for any purpose necessary or appropri-
ate to carry out the duties imposed upon the Administrator pursuant to 
law, including but not limited to— 
(1) construction, acquisition, and replacement of (i) the trans-
mission system, including facilities and structures appurtenant 
thereto, and 
(ii) 
additions, improvements, and betterments 
thereto (hereinafter in this Act referred to as "transmission 
system"); 
(2) operation, maintenance, repair, and relocation, to the extent 
such relocation is not provided for under subsection (1) above, of 
the transmission system; 
(3) electrical research, development, experimentation, test, and 
investigation related to construction, operation, and maintenance 
of transmission systems and facilities; 
(4) marketing of electric power; 
(5) transmission over facilities of others and rental, lease, or 
lease-purchase of facilities; 
(6) purchase of electric power (including the entitlement of 
electric plant capability) (i) on a short-term basis to meet tem-
porary deficiencies in electric power which the Administrator is 
obligated by contract to supply, or (ii) if such purchase has been 
heretofore authorized or is made with funds expressly appro-
priated for such purchase by the Congress, or (iii) if to be paid 
for with funds provided by other entities for such purpose under 
a trust or agency arrangement; 
(7) defraying emergency expenses or insuring continuous 
operation; 
(8) paying the interest on, premiums, discounts, and expenses, 
if any, in connection with the issuance of, and principal of all 
bonds issued under section 13(a) of this Act, including provision 
for and maintenance of reserve and other funds established in 
connection therewith; 
(9) making such payments to the credit of the reclamation fund 
or other funds as are required by or pursuant to law to be made 
into such funds in connection with reclamation projects in the 
Pacific Northwest: Provided^ That this clause shall not be con-
strued as permitting the use of revenues for repayment of costs 
allocated to irrigation at any project except as otherwise expressly 
authorized by law; 
(10) making payments to the credit of miscellaneous receipts 
of the Treasury for all unpaid costs required by or pursuant to 
law to be charged to and returned to the general fund of the 
Treasury for the repayment of the Federal investment in the 
Federal Columbia Eiver Power System from electric power mar-
keted by the Administrator; and 
(11) acquiring such goods and services, and paying dues and 
membership fees in such professional, utility, industry, and other 
societies, associations, and institutes, together with expenses 
related to such memberships, including but not limited to the 
acquisitions and payments set forth in the general provisions of the 
annual appropriations Act for the Department of Interior, as the 
Administrator determines to be necessary or appropriate in carry-
ing out the purposes of this Act. 
(c) Moneys heretofore or hereafter appropriated shall be used only 
for the purposes for which appropriated, and moneys received by the 
Administrator in trust shall be used only for carrying out such trust. 
Ante, p. 822. 
1380 
PUBLIC LAW 93-454-OCT. 18, 1974 
[88 STAT. 
16 use 832a, 
832i, 832k. 
Audit, report to 
Congress. 
31 use 850, 
851. 
16 use 838j. 
Sale an d issu-
ance. 
16 use 838k. 
Terms and con-
ditions. 
Interest rate, 
determination. 
Limitation. 
"Net pro-
ceeds." 
The provisions of the Government Corporation Control Act (31 
U.S.C. 841 et seq.) shall be applicable to the Administrator in the same 
manner as they are applied to the wholly owned Government corpora-
tions named in section 101 of such Act (31 U.S.C. 846), but nothing in 
the proviso of section 850 of title 31, United States Code, shall be con-
strued as affecting the powers granted in subsection (b) (11) of this 
section and in sections 2(f), 10(b), and 12(a) of the Bonneville Proj-
ect Act (16 U.S.C. 832 et seq.). 
(d) Notwithstanding the provisions of sections 105 and 106 of the 
Government Corporation Control Act, the financial transactions of the 
Administrator shall be audited by the Comptroller General at such 
times and to such extent as the Comptroller General deems necessary, 
and reports of the results of each such audit shall be made to the Con-
gress within 61/^ months following the end of the fiscal year covered 
by the audit. 
INVESTMENT OF EXCESS FUNDS 
SEC. 12. (a) If the Administrator determines that moneys in the 
fund are in exbess of current needs he may request tlie investment of 
such amounts as he deems advisable by the Secretary of the Treasury 
in direct, general obligations of, or obligations guaranteed as to both 
principal and interest by, the United States of America. 
(b) With the approval of the Secretary of the Treasury, the Admin-
istrator may deposit moneys of the fund in any Federal Reserve 
bank or other depository for funds of the United States of America, 
or in such other banks and financial institutions and under such terms 
and conditions as the Administrator and the Secretary of the Treasury 
may mutually agree. 
REVENUE BONDS 
SEC. 13. (a) The Administrator is authorized to issue and sell to 
the Secretary of the Treasury from time to time in the name and for 
and on behalf of the Bonneville Power Administration bonds, notes, 
and other evidences of indebtedness (in this Act collectively referred 
to as "bonds") to assist in financing the construction, acquisition, and 
replacement of the transmission system, and to issue and sell bonds 
to refund such bonds. Such bonds shall be in such forms and denomina-
tions, bear such maturities, and be subject to such terms and condi-
tions as may be prescribed by the Secretary of the Treasury taking 
into account terms and conditions prevailing in the market for similar 
bonds, the useful life of the facilities for which the bonds are issued, 
and financing practices of the utility industry. Refunding provisions 
may be prescribed by the Administrator. Such bonds shall bear interest 
at a rate determined by the Secretary of the Treasury taking into 
consideration the current average market yield on outstanding 
marketable obligations of the United States of comparable maturi-
ties, plus an amount in the judgment of the Secretary^ of the Treasury 
to provide for a rate comparable to the rates prevailing in the market 
for similar bonds. The aggregate principal amount of any such bonds 
outstanding at any one time shall not exceed $1,250,000,000. 
(b) The principal of, premiums, if any, and interest on such bonds 
shall be payable solely from the Administrator's net proceeds as here-
inafter defined. "Net proceeds" shall mean for the purposes of this 
section the remainder of the Administrator's gross receipts from all 
sources after first deducting trust funds and the costs listed in section 
11(b) (2) through 11(b) (7) and 11(b) (11), and shall include reserve 
or other funds created from such receipts. 
88 
STAT.] 
PUBLIC LAW 93-455-OCT. 18, 1974 
1381 
(c) The Secretary of the Treasury shall purchase forthwith any 
bonds issued by the Administrator under this Act and for that pur-
pose is authorized to use as a public debt transaction the proceeds from 
the sale of any securities issued under the Second Liberty Bond Act, 
as now or hereafter in force, and the purposes for which securities 
may be issued under the Second Liberty Bond Act, as now or here-
after in force, are extended to include any purchases of the bonds 
issued by the Administrator under this Act, The Secretary of the 
Treasury may, at any time, sell any of the bonds acquired by him under 
this Act. All redemptions, purchases, and sales by the Secretary of 
the Treasury of such bonds shall be treated as public debt transactions 
of the United States. 
Approved October 18., 1974. 
Bonds, pur-
;hase. 
31 u s e 774. 
Public Law 93-455 
AN ACT 
To amend the Military Personnel and Civilian Employees' Claims Act of 1964, 
as amended, with respect to the settlement of claims against the United States 
by members of the uniformed services and civilian oflScers and employees for 
damage to, or loss of, personal property incident to their service. 
Be it enacted hy the Senate and House of Representaties 
of the 
United States of America in Congress assemhled^ That (a) section 
3(a)(1) of the Military Personnel and Civilian Employees' Claims 
Act of 1964, as amended (78 Stat. 767, as amended; 31 U.S.C. 241 
(a) (1)), is amended by striking out "$10,000" and inserting in place 
thereof "$15,000", and 
(b) Section 3(b)(1) of the Military Personnel and Civilian 
Employees' Claims Act of 1964, as amended (78 Stat. 767, as amended; 
31 U.S.C. 241 (b) (1) ), is amended to read as follows: 
"(b) (1) Subject to any policies the President may prescribe to effec-
tuate the purposes of this subsection and under such regulations as 
the head of an agency, other than a military department, the Secre-
tary of Transportation with respect to the Coast Guard, or the Depart-
ment of Defense, may prescribe, he or his designee may settle and pay 
a claim arising after the effective date of this Act against the United 
States for not more than $15,000 made by a member of the uniformed 
services under the jurisdiction of that agency or by a civilian officer or 
employee of that agency, for damage to, or loss of, personal property 
incident to his service. If the claim is substantiated and the possession 
of that property is determined to be reasonable, useful, or proper 
under the circumstances, the claim may be paid or the property 
replaced in kind. This subsection does not apply to claims settled 
before its enactment." 
SEC. 2. The amendments provided in this Act shall apply to claims 
based upon losses of personal property which occur after the effective 
date of this Act. 
Approved October 18, 1974. 
October 18, 1974 
[H. R. 7135] 
Uniformed serv-
ices. 
Claims settle-
ment. 
Non-military 
departments. 
31 u s e 241 
note. 
38-194 O - 76 - 5 Pt. 2