An Act to amend the Tennessee Valley Authority Act of 1933, as amended, and for other purposes
PL 86-137 (H.R.3460), enacted 08/06/1959

280 
PUBLIC LAW 86-136-AUG. 4, 1959 
[73 ST A T . 
August 4, 1959 
[H. R. 5927] 
Public Law 86-136 
AN ACT 
To authoiizo the conveyance to the city of Warner Robins, Georgia, of about 29 
acres of land comprising a i>art of Robins Air Force Base. 
Warner Robins, 
Ga. 
Conveyance. 
Right-of-way. 
Terms 
dltlons. 
Be it enacted hy the Senate and Hou^e of Representatives 
of the. 
United States of Am^i^ica in Congress assembled, That the Secretary 
of the Air Force is authorized and directed to convey to the city of 
Warner Eobins, Georgia, at the fair market value as determined by 
the Secretary of the Air Force, all the right, title, and interest of the 
United States in and to approximately 29 acres of land comprising a 
part of the Eobins Air Force Base, including improvements which 
may be located thereon at the time of the conveyance, as outlined in 
red on Robins Air Force Base map, sheet 1 of drawing numbered 
8-58-105 dated October 16, 1958, on file at Robins Air Force Base, 
Greorgia. 
SEC. 2. The conveyance authorized by this Act shall be subject to 
the retention by the United States of a right-of-way for utility lines 
in and over the land herein authorized to be conveyed. 
SEC. 3. The Secretary of the Air Force may include in the deed of 
conveyance authorized under this Act suoh terms and conditions as he 
considers to be in the public interest. 
Approved August -f, 1959. 
August 6, 1959 
[H. R. 3460] 
Public Law 86-137 
AN ACT 
To amend the Tennessee Valley Authority Act of 1933, as amended, and for 
other purposes. 
TVA. 
Sel 
f- fIn anc ing. 
16 u s e 831h-2. 
S3 Stat. 1083. 
B o n d s 
etc. 
notes, 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the last three 
paragraphs under the subtitle "Independent Agencies and Corpora-
tions" in title I I of the Government Corporations Appropriation Act, 
1948 (61 Stat. 576-577), are hereby repealed; and the Tennessee Val-
ley Authority Act of 1933, as amended, is hereby amended by inserting 
immediately after section 15c thereof (16U.S.C. 831n-3) the following 
new section: 
"SEC. 15d. (a) The Corporation is authorized to issue and sell 
Issuance and bouds, uotes, and other evidences of indebtedness (hereinafter coUec-
^^^' 
tively referred to as 'bonds') in an amount not exceeding $750,000,000 
outstanding at any one time to assist in financing its power program 
and to refund such bonds. The Corporation may, in performing func-
tions authorized by this Act, use the proceeds of such bonds for the 
construction, acquisition, enlargement, improvement, or replacement 
of any plant or other facility used or to be used for the generation or 
transmission of electric power (including the portion of any multiple-
purpose structure used or to be used for power generation); as may 
be required in connection with the leasee lease-purchase, or any con-
tract for the power output of any such plant or other facility; and for 
Other purposes incidental thereto. Unless otherwise specifically au-
thorized by Act of Congress the Corporation shall make no contracts 
for the sale or delivery of power which would have the effect of mak-
ing the Corporation or its distributors, directly or indirectly, a source 
of power supply outside the area for which the Corporation or its 
distributors were the primary source of power supply on July 1,1957, 
73 ST AT.] 
PUBLIC LAW 86-137-AUG. 6, 1959 
281 
and such additional area extending not more than five miles around the 
periphery of such area as may be necessary to care for the growth of 
the Corporation and its distributors within said area: Provided^ how-
ever^ That such additional area shall not in any event increase by 
more than 2y2 per centum (or two thousand square miles, whichever 
is the lesser^ the area for which the Corporation and its distributors 
were the primary source of power supply on July 1,1957: Andvro-
vided further^ That no part of such additional area may be in a State 
not now served by the Corporation or its distributors or in a munici-
pality receiving electric service from another source on or after July 
1,1957, and no more than five hundred square miles of such additional 
area may be in any one State now served by the Corporation or its 
distributors. 
"Nothing in this subsection shall prevent the Corporation or its dis-
tributors from supplying electric power to any customer within any 
area in which the Corporation or its distributors had generally estab-
lished electric service on July 1,1957, and to which electric service was 
not being supplied from any other source on the effective date of this 
Act. 
"Nothing in this subsection shall prevent the Corporation, when 
economically feasible, from making exchange power arrangements 
with other power-generating organizations with which the Corpora-
tion had such arrangements on July 1, 1957, nor prevent the Corpo-
ration from continuing to supply power to Dyersburg, Tennessee, and 
Covington, Tennessee, or from entering into contracts to supply or 
from supplying power to the cities of Paducah, Kentucky; Princeton, 
Kentucky; Glasgow, Kentucky; Fulton, Kentucky; Monticello, Ken-
tucky; Hickman, Kentucky; Chickamauga, Georgia; Kinggold, 
Georgia; Oak Ridge, Tennessee; and South Fulton, Tennessee; or 
agencies thereof; or from entering into contracts to supply or from 
supplying power for the Naval Auxiliary Air Station in Lauderdale 
and Kemper Counties, Mississippi, through the facilities of the East 
Mississippi Electric Power Association: Provided further^ That 
nothing herein contained shall prevent the transmission of TVA power 
to the Atomic Energy Commission or the Department of Defense 
or any agency thereof, on certification by the President of the United 
States that an emergency defense need for such power exists. Nothing 
in this Act shall affect the present rights of the parties in any existing 
lawsuits involving efforts of towns in the same general area where 
TVA power is supplied to obtain TVA power. 
"The principal of and interest on said bonds shall be payable solely 
from the Corporation's net power proceeds as hereinafter defined. 
Net power proceeds are defined for purposes of this section as the 
remainder of the Corporation's gross power revenues after deducting 
the costs of operating, maintaining, and administering its power 
properties (including costs applicable to that portion of its multiple-
purpose properties allocated to power) and payments to States and 
counties m lieu of taxes but before deducting depreciation accruals or 
other charges representing the amortization of capital expenditures, 
plus the net proceeds of the sale or other disposition of any power 
lacility or interest therein, and shall include reserve or other funds 
created from such sources. Notwithstanding the provisions of section 
26 of this Act or any other provision of law, the Corporation may 
pledge and use its net power proceeds for payment of the principal of 
and interest on said bonds, for purchase or redemption thereof, and 
for other purposes incidental thereto, including creation of reserve 
funds and other funds which may be similarly pledged and used, to 
such extent and in such manner as it may deem necessary or desirable. 
The Corporation is authorized to enter into binding covenants with 
E x c h a n g e ar-
rangemeiitsi etc. 
N e t 
ceeds. power pro-
49 JJtat. 1079. 
16 u s e 831 y. 
282 
PUBLIC LAW 86-137-AUG. 6, 1959 
[73 ST A T . 
"Bond contract." 
kxceptlon. 
Post, 
p. 338 
Report to 
gress. 
Con-
Restriction. 
Restriction. 
Sale. 
T e rm s, r at es, 
method, etc. 
the holders of said bonds—and with the trustee, if any—under any 
indenture, resolution, or other agreement entered into in connection 
with the issuance thereof (any such agreement being hereinafter 
referred to as a 'bond contract') with respect to the establishment of 
reserve funds and other funds, adequacy of charges for supply of 
power, application and use of net power proceeds, stipulations con-
cerning tne subsequent issuance of bonds or the execution of leases or 
lease-purchase agreements relating to power properties, and such other 
matters, not inconsistent with this Act, as the Corporation may deem 
necessary or desirable to enhance the marketabifity of said bonds. 
The issuance and sale of bonds by the Corporation and the expenditure 
of bond proceeds for the purposes specified herein, including the 
addition of generating units to existing power-producing projects 
and the construction of additional power-producing projects, shall 
not be subject to the requirements or limitations of anv other law: 
Provided, That, with the budget estimates transmitted by the Presi-
dent to the Congress, the President shall transmit the power construc-
tion program of the Corporation as presented to him and recommended 
by the Corporation, together with any recommendation he may deem 
appropriate. 
"Neither bond proceeds nor power revenues received by the Corpora-
tion shall be used to initiate the construction of new power producing 
projects (except for replacement purposes and except the first such 
project begun after the effective date of this section) until the con-
struction program of the Corporation shall have been before Congress 
in session for ninety calendar days. In the absence of any modifying 
action by a concurrent resolution of the Congress within the ninety 
days, such projects will be deemed to have Congressional approval. 
"(b) Bonds issued by the Corporation liereunder shall not be obli-
gations of, nor shall payment of the principal thereof or interest 
thereon be guaranteed by, the United States. Proceeds realized by 
the Corporation from issuance of such bonds and from power opera-
tions and the expenditure of such proceeds shall not be subject to 
apportionment under the provisions of Kevised Statutes 3679, as 
amended (31 U.S.C. 665). 
"(c) Bonds issued by the Corporation under this section shall be 
negotiable instruments unless otherwise specified therein, shall be in 
such forms and denominations, shall be sold at such times and in such 
amounts, shall mature at such time or times not more than fifty years 
from their respective dates, shall be sold at such prices, shall bear such 
rates of interest, may be redeemable before maturity at the option of 
the Corporation in such manner and at such times and redemption 
premiums, may be entitled to such relative priorities of claim on the 
Corporation's net power proceeds with respect to principal and inter-
est payments, and shall be subject to such other terms and conditions, 
as the Corporation may determine: Provided, 
That at least fifteen 
days before selling each issue of bonds hereunder (exclusive of any 
commitment shorter than one year) the Corporation shall advise the 
Secretary of the Treasury as to the amount, proposed date of sale, 
maturities, terms and conditions and expected rates of interest of the 
proposed issue in the fullest detail possible and, if the Secretary shall 
so request, shall consult with him or his designee thereon, but the sale 
and issuance of such bonds shall not be subject to approval by the 
Secretary of the Treasury except as to the time of issuance and the 
maximum rates of interest to be borne by the bonds: Provided 
further, 
That if the Secretary of the Treasury does not approve a proposed 
issue of bonds hereunder within seven working days following the 
date on which he is advised of the proposed sale, the Corporation may 
issue to the Secretary interim obligations in the amount of the pro-
78 S T A T . ] 
PUBLIC LAW 86-137-AUG. 6, 1959 
283 
posed issue, which the Secretary is directed to purchase. In case the 
Corporation determines that a proposed issue of bonds hereunder can-
not be sold on reasonable terms, it may issue to the Secretary interim 
obligations which the Secretary is authorized to purchase. Notwith-
standing the foregoing provisions of this subsection, obligations issued 
by the Corporation to the Secretary shall not exceed $150,000,000 out-
standing at any one time, shall mature on or before one year from 
date of issue, and shall bear interest equal to the average rate (rounded 
to the nearest one-eighth of a* percent) on outstanding marketable 
obligations of the United States with maturities from dates of issue of 
one year or less as of the close of the month preceding the issuance 
of the obligations of the Corporation. 
If agreement is not reached 
within eight months concerning the issuance of any bonds which the 
Secretary has failed to approve, the Corporation may nevertheless 
proceed to sell such bonds on any date thereafter Avithout approval by 
the Secretary in amount sufficient to retire the interim obligations 
issued to the Treasury and such interim obligations shall be retired 
from the proceeds of such bonds. For the purpose of any purchase 
of the Corporation's obligations the Secretary of the Ireasury 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 
amended, and the purposes for which securities may be issued under 
the Second Liberty Bond Act, as amended, are extended to include 
any purchases of the Corporation's obligations hereunder. 
The Cor-
poration may sell its bonds by negotiation or on the basis of competi-
tive bids, subject to the right, if reserved, to reject all bids; may 
designate trustees, registrars, and paying agents in connection with 
said bonds and the issuance thereof; may arrange for audits of its 
accounts and for reports concerning its financial condition and opera-
tions by certified public accounting firms (which audits and reports 
shall be in addition to those required by sections 105 and 106 of the 
Act of December 6, 1945 (59 Stat. 599; 31 U.S.C. 850-851), may, 
subject to any covenants contained in any bond contract, invest the 
proceeds of any bonds and other funds under its control which derive 
from or pertain to its power program in any securities approved for 
investment of national bank funds and deposit said proceeds and 
other funds, subject to withdrawal by check or otherwise, in any 
Federal Reserve Bank or bank having membership in the Federal 
Reserve System; and may perform such other acts not prohibited by 
law as it deems necessary or desirable to accomplish the purposes of 
this section. Bonds issued by the Corporation hereunder shall contain 
a recital that they are issued pursuant to this section, and such recital 
shall be conclusive evidence of the regularity of the issuance and sale 
of such bonds and of their validity. The annual report of the Board 
filed pursuant to section 9 of this Act shall contain a detailed state-
ment of the operation of the provisions of this section during the year. 
"(d) Bonds issued by the Corporation hereunder shall be lawful 
investments and may be accepted as security for all fiduciary, trust, 
and public funds, the investment or deposit of which shall be under 
the authority or control of any officer or agency of the United States. 
The Secretary of the Treasury or any other officer or agency having 
authority over or control of any such fiduciary, trust, or public funds, 
may at any time sell any of the bonds of the Corporation acquired by 
them under this section. 
Bonds issued by the Corporation hereunder 
shall be exempt both as to principal and interest from all taxation now 
or hereafter imposed by any State or local taxing authority except es-
tate, inheritance, and gift taxes. 
"(e) From net power proceeds in excess of those required to meet 
the Corporation's obligations under the provisions of any bond or 
40 Stat. 288. 
31 u s e 774. 
Report. 
48 Stat. 63. 
16 u s e 831h. 
State or local tax 
exemption. 
E x c e s s 
ceeds. 
32716 O-60—21 
284 
PUBLIC LAW 86-137-AUG. 6, 1959 
[73 STAT. 
bond contract, the Corporation shall, beginning with fiscal year 1961, 
make payments into the Treasury as miscellaneous receipts on or be-
fore December 31 and June 30, of each fiscal vear as a return on the ap-
propriation investment in the Corporation s power facilities, plus a 
repayment sum of not less than $10,000,000 for each of the first five 
fiscal years, $15,000,000 for each of the next five fiscal years, and 
$20,000,000 for each fiscal year thereafter, which repayment sum shall 
be applied to reduction of said appropriation investment until a total 
of $1,000,000,000 of said approjjriation investment shall have been 
repaid. 
The said appropriation investment shall consist, in any fiscal 
year, of that part of the Corporation's total investment assigned to 
power as of the beginning of the fiscal year (including both completed 
plant and construction m progress) which has been provided from 
appropriations or by transfers of property from other Government 
agencies without reimbursement by the Corporation, less repayments 
of such appropriation investment made under title I I of the Govern-
61 Stat. 576. 
meut Corporatious Appropriation Act, 1948, this Act, or other appli-
^ " 
/ 
'^' cable legislation. 
The payment as a return on the appropriation 
investment in each fiscal year shall be equal to the computed average 
interest rate payable by the Treasury upon its total marketable public 
obligations as of the beginning of said fiscal year applied to said 
appropriation investment. 
Payments due hereunder may be deferred 
for not more than two years when, in the judgment of the Board of 
Directors of the Corporation, such payments cannot feasibly be made 
because of inadequacy of funds occasioned by drought, poor business 
conditions, emergency replacements, or other factors beyond the con-
trol of the Corporation. 
pow^r ^°'^^® °' 
"(f) The Corporation shall charge rates for power which will pro-
duce gross revenues sufficient to provide funds for operation, main-
tenance, and administration of its power system; payments to States 
and counties in lieu of taxes; debt service on outstanding bonds, in-
cluding provision and maintenance of reserve funds and other funds 
established in connection therewith; payments to the Treasury as a 
return on the appropriation investment pursuant to subsection (e) 
hereof; payment to the Treasury of the repayment sums specified in 
subsection (e) hereof; and such additional margin as the Board may 
consider desirable for investment in power system assets, retirement 
of outstanding bonds in advance of maturity, additional reduction of 
appropriation investment, and other purposes connected with the Cor-
poration's power business, having due regard for the primary ob-
jectives of the Act, including the objective that power shall be sold 
at rates as low as are feasible. In order to protect the investment of 
holders of the Corporation's securities and the appropriation in-
vestment as defined in subsection (e) hereof, the Corporation, during 
each successive five-year period beginning with the five-year period 
which commences on July 1 of the first full fiscal year after the effec-
tive date of this section, shall apply net power proceeds either in re-
duction (directly or through payments into reserve or sinking funds) 
of its capital obligations, including bonds and the appropriation in-
vestment, or to reinvestment in power assets, at least to the extent 
of the combined amount of the aggregate of the depreciation accruals 
and other charges representing the amortization of capital expendi-
tures applicable to its power properties plus the net proceeds realized 
from any disposition of power facilities in said period. 
Power property. 
"(g) Powcr generating and related facilities operated by the Cor-
poration under lease and lease-purchase agreements shall constitute 
power property held by the Corporation within the meaning of sec-
54 Stat. 626. 
tiou 13 of tliis Act, but that portion of the payment due for any fiscal 
^^ 
' 
year under said section 13 to a State where such facilities are located 
73 
S T A T . ] 
PUBLIC LAW 86-138-AUG. 7, 1959 
285 
which is determined or estimated by the Board to result from holding 
such facilities or selling electric energy generated thereby shall be 
reduced by the amount of any taxes or tax equivalents applicable to 
such fiscal year paid by the owners or others on account of said facil-
ities to said State and to local taxing jurisdictions therein. 
In con-
nection with the construction of a generating plant or other facilities 
under an agreement providing for lease or purchase of said facilities 
or any interest therein by or on behalf of the Corporation, or for the 
purchase of the output thereof, the Corporation mRj convey, in the 
name of the United States by deed, lease, or otherwise, any real prop-
erty in its possession or control, may perform necessary engineering 
and construction work and other services, and may enter into any 
necessary contractual arrangements. 
"(h) It is hereby declared to be the intent of this section to aid 
the Corporation in discharging its responsibility for the advancement 
of the national defense and the physical, social and economic develop-
ment of the area in which it conducts its operations by providing it 
with adequate authority and administrative flexibility to obtain the 
necessary funds with which to assure an ample supply of electric 
power for such purposes by issuance of bonds and as otherwise pro-
vided herein, and this section shall be construed to eflfectuate sucli 
intent." 
SEC. 2. Paragraph seventh of section 5136 of the Eevised Statutes 
(12 U.S.C. 24), as amended, is further amended by inserting after 
the words "obligations issued by the International Bank for Recon-
struction and Development which are at the time eligible for purchase 
by a national bank for its own account" the words ", nor to bonds, 
notes and other obligations issued by the Tennessee Valley Authority," 
and by substituting for the words "said bank" in the immediately 
following proviso the words "either of said organizations". 
SEC. 3. That section 5(m) of the Tennessee Valley Authority Act 
of 1933, as amended, is hereby amended by inserting after the word 
"Corporation" in the first line, the words "except ferrophosphorus". 
Approved August 6, 1%9. 
Lease and lease-
p u r c h a s e agree-
ments. 
D e c 1 aretion of 
intent. 
66 Stat. 334. 
16 u s e 831d. 
Public Law 86-138 
AN ACT 
Relating to the maintenance and travel expenses of judges. 
August 7, 1959 
[H. R. 2909] 
Be it enacted hy the Senate and Houae of Representatives 
of the 
United /States of America in Congress assembled, That the first para-
graph of section 456 of title 28, United States (^ode, is amended to read 
as follows: 
"Each Justice or judge of the United States and each retired 
Justice or judge recalled or desi^iated and assigned to active duty, 
while attending court or transactmg official business at a place other 
than his official station, shall, upon his certificate, be paid by the 
Director of the Administrative Office of the United States Courts all 
necessary traveling expenses, and also a per diem allowance in lieu 
of actual expenses of subsistence (as defined in the Travel Expense 
Act of 1949, as amended, 63 Stat. 166; 5 U.S.C. 835) at the per diem 
rate provided for by the Travel Expense Act of 1949, as amended, 
or, in accordance with regulations prescribed by the Director of the 
Administrative Office of the United States Courts with the approval 
of the Judicial Conference of the United States, reimbursement for 
his actual expenses of subsistence not in excess of the maximum 
amount fixed by the Travel Expense Act of 1949, as amended." 
Approved August 7, 1959. 
Judges. 
Allowancos. 
67 Stat. 488. 
69 Stat. 393. 
5 u s e 836.