TVA Act

TENNESSEE VALLEY AUTHORITY ACT
AN ACT
To improve the navigability and to provide for the flood control of the Tennessee River; to provide for
reforestation and the proper use of marginal lands in the Tennessee Valley; to provide for the
agricultural and industrial development of said valley; to provide for the national defense by the
creation of a corporation for the operation of Government properties at and near Muscle Shoals
in the State of Alabama, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America
in Congress assembled, That for the purpose of maintaining and operating the properties
now owned by the United States in the vicinity of Muscle Shoals, Alabama, in the
interest of the national defense and for agricultural and industrial development, and to
improve navigation in the Tennessee River and to control the destructive flood water in
the Tennessee River and Mississippi River Basins, there is hereby created a body
corporate by the name of the “Tennessee Valley Authority” (hereinafter referred to as the
“Corporation”). The Board of Directors first appointed shall be deemed the incorporator,
and the incorporation shall be held to have been effected from the date of the first
meeting of the Board. This Act may be cited as the “Tennessee Valley Authority Act of
1933.” [48 Stat. 58-59, 16 U.S.C. sec. 831]1
Sec. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE BOARD OF
DIRECTORS.
(a) MEMBERSHIP.-(1) APPOINTMENT.--The Board of Directors of the Corporation (referred to
in this Act as the “Board”) shall be composed of 9 members appointed by the President
by and with the advice and consent of the Senate, at least 7 of whom shall be a legal
resident of the service area of the Corporation.
(2) CHAIRMAN.--The members of the Board shall select 1 of the members to
act as chairman of the Board.
(b) QUALIFICATIONS.--To be eligible to be appointed as a member of the Board,
an individual-(1) shall be a citizen of the United States;
(2) shall have management expertise relative to a large for-profit or nonprofit
corporate, government, or academic structure;
(3) shall not be an employee of the Corporation;
(4) shall make full disclosure to Congress of any investment or other financial
interest that the individual holds in the energy industry; and
(5) shall affirm support for the objectives and missions, of the Corporation,
including being a national leader in technological innovation, low-cost power, and
environmental stewardship.

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For the purpose of identifying the sections that appeared in the original Act of 1933 and those that have been
brought into the Act by amendment, references have been placed at the end of the sections. For example, the
reference at the end of section 1, 48 Stat. 58-59, indicates that this section will be found in volume 48 of the
Statutes at Large on pages 58 and 59.
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(c) RECOMMENDATIONS.--In appointing members of the Board, the President
shall-(1) consider recommendations from such public officials as-(A) the Governors of States in the service area;
(B) individual citizens;
(C) business, industrial, labor, electric power distribution, environmental,
civic, and service organizations; and
(D) the congressional delegations of the States in the service area; and
(2) seek qualified members from among persons who reflect the diversity,
including the geographical diversity, and needs of the service area of the Corporation.
(d) TERMS.-(1) IN GENERAL.--A member of the Board shall serve a term of 5 years. A
member of the Board whose term has expired may continue to serve after the member’s
term has expired until the date on which a successor takes office, except that the member
shall not serve beyond the end of the session of Congress in which the term of the
member expires.
(2) VACANCIES.--A member appointed to fill a vacancy on the Board
occurring before the expiration of the term for which the predecessor of the member was
appointed shall be appointed for the remainder of that term.
(e) QUORUM.-(1) IN GENERAL.--Five of the members of the Board shall constitute a
quorum for the transaction of business.
(2) VACANCIES.--A vacancy on the Board shall not impair the power of the
Board to act.
(f) COMPENSATION.-(1) IN GENERAL.--A member of the Board shall be entitled to receive-(A) a stipend of-(i) $45,000 per year; or
(ii)(I) in the case of the chairman of any committee of the Board
created by the Board, $46,000 per year; or
(II) in the case of the chairman of the Board, $50,000 per year; and
(B) travel expenses, including per diem in lieu of subsistence, in the same
manner as persons employed intermittently in Government service under section 5703 of
title 5, United States Code.
(2) ADJUSTMENTS IN STIPENDS.--The amount of the stipend under
paragraph (1)(A)(i) shall be adjusted by the same percentage, at the same time and
manner, and subject to the same limitations as are applicable to adjustments under section
5318 of title 5, United States Code.
(g) DUTIES.-(1) IN GENERAL.--The Board shall-(A) establish the broad goals, objectives, and policies of the Corporation
that are appropriate to carry out this Act;
(B) develop long-range plans to guide the Corporation in achieving the
goals, objectives, and policies of the Corporation and provide assistance to the chief
executive officer to achieve those goals, objectives, and policies;
(C) ensure that those goals, objectives, and policies are achieved;

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(D) approve an annual budget for the Corporation;
(E) adopt and submit to Congress a conflict-of-interest policy applicable
to members of the Board and employees of the Corporation;
(F) establish a compensation plan for employees of the Corporation in
accordance with subsection (i);
(G) approve all compensation (including salary or any other pay, bonuses,
benefits, incentives, and any other form of remuneration) of all managers and technical
personnel that report directly to the chief executive officer (including any adjustment to
compensation);
(H) ensure that all activities of the Corporation are carried out in
compliance with applicable law;
(I) create an audit committee, composed solely of Board members
independent of the management of the Corporation, which shall-(i) in consultation with the inspector general of the Corporation,
recommend to the Board an external auditor;
(ii) receive and review reports from the external auditor of the
Corporation and inspector general of the Corporation; and
(iii) make such recommendations to the Board as the audit committee
considers necessary;
(J) create such other committees of Board members as the Board considers
to be appropriate;
(K) conduct such public hearings as it deems appropriate on issues that
could have a substantial effect on-(i) the electric ratepayers in the service area; or
(ii) the economic, environmental, social, or physical well-being of the
people of the service area;
(L) establish the electricity rates charged by the Corporation; and
(M) engage the services of an external auditor for the Corporation.
(2) MEETINGS.--The Board shall meet at least 4 times each year.
(h) CHIEF EXECUTIVE OFFICER.-(1) APPOINTMENT.--The Board shall appoint a person to serve as chief
executive officer of the Corporation.
(2) QUALIFICATIONS.-(A) IN GENERAL.--To serve as chief executive officer of the
Corporation, a person-(i) shall have senior executive-level management experience in large,
complex organizations;
(ii) shall not be a current member of the Board or have served as a
member of the Board within 2 years before being appointed chief executive officer; and
(III) shall comply with the conflict-of-interest policy adopted by the
Board.
(B) EXPERTISE.--In appointing a chief executive officer, the Board shall
give particular consideration to appointing an individual with expertise in the electric
industry and with strong financial skills.
(3) TENURE.--The chief executive officer shall serve at the pleasure of the
Board.

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(i) COMPENSATION PLAN.-(1) IN GENERAL.--The Board shall approve a compensation plan that
specifies all compensation (including salary or any other pay, bonuses, benefits,
incentives, and any other form of remuneration) for the chief executive officer and
employees of the Corporation.
(2) ANNUAL SURVEY.--The compensation plan shall be based on an annual
survey of the prevailing compensation for similar positions in private industry, including
engineering and electric utility companies, publicly owned electric utilities, and Federal,
State, and local governments.
(3) CONSIDERATIONS.--The compensation plan shall provide that
education, experience, level of responsibility, geographic differences, and retention and
recruitment needs will be taken into account in determining compensation of employees.
(4) POSITIONS AT OR BELOW LEVEL IV.--The chief executive officer
shall determine the salary and benefits of employees whose annual salary is not greater
than the annual rate payable for positions at level IV of the Executive Schedule under
section 5315 of title 5, United States Code.
(5) POSITIONS ABOVE LEVEL IV.--On the recommendation of the chief
executive officer, the Board shall approve the salaries of employees whose annual
salaries would be in excess of the annual rate payable for positions at level IV of the
Executive Schedule under section 5315 of title 5, United States Code. [48 Stat. 59, as
amended by 119 Stat. 2963-2966, 16 U.S.C. sec. 831a]
Sec. 3.
(a) APPOINTMENT BY THE CHIEF EXECUTIVE OFFICER.--The chief
executive officer shall appoint, with the advice and consent of the Board, and without
regard to the provisions of civil service laws applicable to officers and employees of the
United States, such managers, assistant managers, officers, employees, attorneys, and
agents, as are necessary for the transaction of the business of the Corporation.
(b) WAGE RATES.--All contracts to which the Corporation is a party and which
require the employment of laborers and mechanics in the construction, alteration,
maintenance, or repair of buildings, dams, locks or other projects shall contain a
provision that not less than the prevailing rate of wages for work of a similar nature
prevailing in the vicinity shall be paid to such laborers or mechanics.
In the event any dispute arises as to what are the prevailing rates of wages, the
question shall be referred to the Secretary of Labor for determination, and his decision
shall be final. In the determination of such prevailing rate or rates, due regard shall be
given to those rates which have been secured through collective agreement by
representatives of employers and employees.
Where such work as is described in the two preceding paragraphs is done directly
by the Corporation the prevailing rate of wages shall be paid in the same manner as
though such work had been let by contract.
Insofar as applicable, the benefits of the Act entitled “An Act to provide
compensation for employees of the United States suffering injuries while in the
performance of their duties, and for other purposes,” approved September 7, 1916 as
amended, shall extend to persons given employment under the provisions of this Act. [48
Stat. 59-60, as amended by 86 Stat. 206 and 118 Stat.2966, 16 U.S.C. sec. 831b]
Sec. 4. Except as otherwise specifically provided in this Act, the Corporation—

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(a) Shall have succession in its corporate name.
(b) May sue and be sued in its corporate name.
(c) May adopt and use a corporate seal, which shall be judicially noticed.
(d) May make contracts, as herein authorized.
(e) May adopt, amend, and repeal bylaws.
(f) May purchase or lease and hold such real and personal property as it deems
necessary or convenient in the transaction of its business, and may dispose of any such
personal property held by it.
The Board shall select a treasurer and as many assistant treasurers as it deems
proper: Provided, That any member of said Board may be removed from office at any
time by a concurrent resolution of the Senate and the House of Representatives.
(g) Shall have such powers as may be necessary or appropriate for the exercise of
the powers herein specifically conferred upon the Corporation.
(h) Shall have power in the name of the United States of America to exercise the
right of eminent domain, and in the purchase of any real estate or the acquisition of real
estate by condemnation proceedings, the title to such real estate shall be taken in the
name of the United States of America, and thereupon all such real estate shall be
entrusted to the Corporation as the agent of the United States to accomplish the purposes
of this Act.
(i) Shall have power to acquire real estate for the construction of dams, reservoirs,
transmission lines, power houses, and other structures, and navigation projects at any
point along the Tennessee River, or any of its tributaries, and in the event that the owner
or owners of such property shall fail and refuse to sell to the Corporation at a price
deemed fair and reasonable by the Board, then the Corporation may proceed to exercise
the right of eminent domain, and to condemn all property that it deems necessary for
carrying out the purposes of this Act, and all such condemnation proceedings shall be had
pursuant to the provisions and requirements hereinafter specified, with reference to any
and all condemnation proceedings: Provided, That nothing contained herein or elsewhere
in this Act shall be construed to deprive the Corporation of the rights conferred by the
Act of February 26, 1931 (46 Stat. 1422, ch. 307, secs. 1 to 5, inclusive), as now
compiled in section 258a to 258e, inclusive, of Title 40 of the United States Code.
(j) Shall have power to construct such dams, and reservoirs, in the Tennessee River
and its tributaries, as in conjunction with Wilson Dam, and Norris, Wheeler, and
Pickwick Landing Dams, now under construction, will provide a nine-foot channel in the
said river and maintain a water supply for the same, from Knoxville to its mouth, and will
best serve to promote navigation on the Tennessee River and its tributaries and control
destructive flood waters in the Tennessee and Mississippi River drainage basins; and
shall have power to acquire or construct power houses, power structures, transmission
lines, navigation projects, and incidental works in the Tennessee River and its tributaries,
and to unite the various power installations into one or more systems by transmission
lines. The directors of the Authority are hereby directed to report to Congress their
recommendations not later than April 1, 1936, for the unified development of the
Tennessee River system.
(k) Shall have power in the name of the United States—
(a) to convey by deed, lease, or otherwise, any real property in the possession
of or under the control of the Corporation to any person or persons, for the purpose of

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recreation or use as a summer residence, or for the operation on such premises of
pleasure resorts for boating, fishing, bathing, or any similar purpose;
(b) to convey by deed, lease, or otherwise, the possession and control of any
such real property to any corporation, partnership, person, or persons for the purpose of
erecting thereon docks and buildings for shipping purposes or the manufacture or storage
thereon of products for the purpose of trading or shipping in transportation: Provided,
That no transfer authorized herein in (b) shall be made without the approval of Congress:
And provided further, That said Corporation, without further action of Congress, shall
have power to convey by deed, lease, or otherwise, to the Ingalls Shipbuilding
Corporation, a tract or tracts of land at or near Decatur, Alabama; and to the Commercial
Barge Lines, Inc., a tract or tracts of land at or near Guntersville, Alabama;
(c) to transfer any part of the possession and control of the real estate now in
possession of and under the control of said Corporation to any other department, agency,
or instrumentality of the United States: Provided, however, That no land shall be
conveyed, leased, or transferred, upon which there is located any permanent dam,
hydroelectric power plant, or munitions plant heretofore or hereafter built by or for the
United States or for the Authority, except that this prohibition shall not apply to the
transfer of Nitrate Plant Numbered 1, at Muscle Shoals, Alabama, or to Waco Quarry:
And provided further, That no transfer authorized herein in (a) or (c), except leases for
terms of less than twenty years, shall be made without the approval of the President of the
United States, if the property to be conveyed exceeds $500 in value; and
(d) to convey by warranty deed, or otherwise, lands, easements, and rights-ofway to States, counties, municipalities, school districts, railroad companies, telephone,
telegraph, water, and power companies, where any such conveyance is necessary in order
to replace any such lands, easements, or rights-of-way to be flooded or destroyed as the
result of the construction of any dam or reservoir now under construction by the
Corporation, or subsequently authorized by Congress, and easements and rights-of-way
upon which are located transmission or distribution lines. The Corporation shall have
power to convey or lease Nitrate Plant Numbered 1, at Muscle Shoals, Alabama, and
Waco Quarry, with the approval of the War Department2 and the President.
(l) Shall have power to advise and cooperate in the readjustment of the population
displaced by the construction of dams, the acquisition of reservoir areas, the protection of
watersheds, the acquisition of rights-of-way, and other necessary acquisitions of land, in
order to effectuate the purposes of the Act; and may cooperate with Federal, State, and
local agencies to that end. [48 Stat. 60-61, as amended by 49 Stat. 1075, 1076, 1080, 55
Stat. 599, 86 Stat. 206, and 118 Stat.2966, 16 U.S.C. sec. 831c.]
Sec. 4A.
LAW ENFORCEMENT.—(a) DESIGNATION OF LAW ENFORCEMENT
AGENTS.—The Board may designate employees of the Corporation to act as law
enforcement agents in the area of jurisdiction described in subsection (c).
(b) DUTIES AND POWERS.—
(1) DUTIES.—A law enforcement agent designated under subsection (a) shall
maintain law and order and protect persons and property in the area of jurisdiction

2

The Department of War was designated the Department of the Army and the title of Secretary of War was
changed to Secretary of the Army by the Act of July 26, 1947, 61 Stat. 501.

6

described in subsection (c) and protect property and officials and employees of the
Corporation outside that area.
(2) POWERS.—In the performance of duties described in paragraph (1), a law
enforcement agent designated under subsection (a) may—
(A) make arrests without warrant for any offense against the United States
committed in the agent's presence, or for any felony cognizable under the laws of the
United States if the agent has probable cause to believe that the person to be arrested has
committed or is committing such a felony;
(B) execute any warrant or other process issued by a court or officer of
competent jurisdiction for the enforcement of any Federal law or regulation issued
pursuant to law in connection with the investigation of an offense described in
subparagraph (A);
(C) conduct an investigation of an offense described in subparagraph (A)
in the absence of investigation of the offense by any Federal law enforcement agency
having investigative jurisdiction over the offense or with the concurrence of that agency;
and
(D) carry firearms in carrying out any activity described in subparagraph
(A), (B), or (C).
(c) AREA OF JURISDICTION.—A law enforcement agent designated under subsection
(a) shall be authorized to exercise the law enforcement duties and powers described in
subsection (b)—
(1) on any lands or facilities owned or leased by the Corporation or within
such adjoining areas in the vicinities of such lands or facilities as may be determined by
the Board under subsection (e); and
(2) on other lands or facilities—
(A) when the person to be arrested is in the process of fleeing from such
lands, facilities, or adjoining areas to avoid arrest;
(B) in conjunction with the protection of property or officials or
employees of the Corporation on or within lands or facilities other than those owned or
leased by the Corporation; or
(C) in cooperation with other Federal, State, or local law enforcement
agencies.
(d) FEDERAL INVESTIGATIVE JURISDICTION AND STATE CIVIL AND CRIMINAL
JURISDICTION NOT PREEMPTED.—Nothing in this section shall be construed to—
(1) limit or restrict the investigative jurisdiction of any Federal law
enforcement agency; or
(2) affect any right of a State or a political subdivision thereof to exercise civil
and criminal jurisdiction on or within lands or facilities owned or leased by the
Corporation.
(e) DETERMINATION OF ADJOINING AREAS.—
(1) IN GENERAL.—The Board shall determine and may from time-to-time
modify the adjoining areas for each facility or particular area of land, or for individual
categories of such facilities or lands, for the purposes of subsection (c)(1).
(2) NOTICE.—A notice and description of each adjoining area determination
or modification of a determination made under paragraph (1) shall be published in the
Federal Register.

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(f) QUALIFICATIONS AND TRAINING.—The Board, in consultation with the Attorney
General, shall adopt qualification and training standards for law enforcement agents
designated under subsection (a).
(g) RELATION TO OTHER LAW.—A law enforcement agent designated under
subsection (a) shall not be considered to be a law enforcement officer of the United
States for the purposes of any other law; and no law enforcement agent designated under
subsection (a) or other employee of the Corporation shall receive an increase in
compensation solely on account of this section.
(h) RELATIONSHIP WITH ATTORNEY GENERAL.—The duties and powers of law
enforcement agents designated under subsection (a) that are described in subsection (b)
shall be exercised in accordance with guidelines approved by the Attorney General. [108
Stat. 2133-2135, as amended by 118 Stat. 2966, 16 U.S.C. sec. 831c-3]
Sec. 5. The Board is hereby authorized—
(a) To contract with commercial producers for the production of such fertilizers or
fertilizer materials as may be needed in the Government's program of development and
introduction in excess of that produced by Government plants. Such contracts may
provide either for outright purchase of materials by the Board or only for the payment of
carrying charges on special materials manufactured at the Board's request for its program.
(b) To arrange with farmers and farm organizations for large-scale practical use of
the new forms of fertilizers under conditions permitting an accurate measure of the
economic return they produce.
(c) To cooperate with National, State, district, or county experimental stations or
demonstration farms, with farmers, landowners, and associations of farmers or
landowners, for the use of new forms of fertilizer or fertilizer practices during the initial
or experimental period of their introduction, and for promoting the prevention of soil
erosion by the use of fertilizers and otherwise.
(d) The Board in order to improve and cheapen the production of fertilizer is
authorized to manufacture and sell fixed nitrogen, fertilizer, and fertilizer ingredients at
Muscle Shoals by the employment of existing facilities, by modernizing existing plants,
or by any other process or processes that in its judgment shall appear wise and profitable
for the fixation of atmospheric nitrogen or the cheapening of the production of fertilizer.
(e) Under the authority of this Act the Board may make donations or sales of the
product of the plant or plants operated by it to be fairly and equitably distributed through
the agency of county demonstration agents, agricultural colleges, or otherwise as the
Board may direct, for experimentation, education, and introduction of the use of such
products in cooperation with practical farmers so as to obtain information as to the value,
effect, and best methods of their use.
(f) The Board is authorized to make alterations, modifications, or improvements in
existing plants and facilities, and to construct new plants.
(g) In the event it is not used for the fixation of nitrogen for agricultural purposes or
leased, then the Board shall maintain in standby condition nitrate plant numbered 2, or its
equivalent, for the fixation of atmospheric nitrogen, for the production of explosives in
the event of war or a national emergency, until the Congress shall by joint resolution
release the Board from this obligation, and if any part thereof be used by the Board for
the manufacture of phosphoric acid or potash, the balance of nitrate plant numbered 2
shall be kept in standby condition.

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(h) To establish, maintain, and operate laboratories and experimental plants, and to
undertake experiments for the purpose of enabling the Corporation to furnish nitrogen
products for military purposes, and nitrogen and other fertilizer products for agricultural
purposes in the most economical manner and at the highest standard of efficiency.
(i) To request the assistance and advice of any officer, agent, or employee of any
executive department or of any independent office of the United States, to enable the
Corporation the better to carry out its power successfully, and as far as practicable shall
utilize the services of such officers, agents, and employees, and the President shall, if in
his opinion, the public interest, service, or economy so require, direct that such
assistance, advice, and service be rendered to the Corporation, and any individual that
may be by the President directed to render such assistance, advice, and service shall be
thereafter subject to the orders, rules, and regulations of the Board: Provided, That any
invention or discovery made by virtue of and incidental to such service by an employee
of the Government of the United States serving under this section, or by any employee of
the Corporation, together with any patents which may be granted thereon, shall be the
sole and exclusive property of the Corporation, which is hereby authorized to grant such
licenses thereunder as shall be authorized by the Board: Provided further, That the Board
may pay to such inventor such sum from the income from sale of license as it may deem
proper.
(j) Upon the requisition of the Secretary of War3 or the Secretary of the Navy to
manufacture for and sell at cost to the United States explosives or their nitrogenous
content.
(k) Upon the requisition of the Secretary of War the Corporation shall allot and
deliver without charge to the War Department so much power as shall be necessary in the
judgment of said Department for use in operation of all locks, lifts, or other facilities in
aid of navigation.
(l) To produce, distribute, and sell electric power, as herein particularly specified.
(m) Repealed.
(n) The President is authorized, within twelve months after the passage of this Act,
to lease to any responsible farm organization or to any corporation organized by it nitrate
plant numbered 2 and Waco Quarry, together with the railroad connecting said quarry
with nitrate plant numbered 2, for a term not exceeding fifty years at a rental of not less
than $1 per year, but such authority shall be subject to the express condition that the
lessee shall use said property during the term of said lease exclusively for the
manufacture of fertilizer and fertilizer ingredients to be used only in the manufacture of
fertilizer by said lessee and sold for use as fertilizer. The said lessee shall covenant to
keep said property in first-class condition, but the lessee shall be authorized to modernize
said plant numbered 2 by the installation of such machinery as may be necessary, and is
authorized to amortize the cost of said machinery and improvements over the term of said
lease or any part thereof. Said lease shall also provide that the Board shall sell to the
lessee power for the operation of said plant at the same schedule of prices that it charges
all other customers for power of the same class and quantity. Said lease shall also
provide that, if the said lessee does not desire to buy power of the publicly owned plant,
it shall have the right to purchase its power for the operation of said plant of the Alabama
3

Title changed to Secretary of the Army by 61 Stat. 501.

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Power Company or any other publicly or privately owned corporation engaged in the
generation and sale of electric power, and in such case the lease shall provide further that
the said lessee shall have a free right of way to build a transmission line over
Government property to said plant paying the actual expenses and damages, if any,
incurred by the Corporation on account of such line. Said lease shall also provide that
the said lessee shall covenant that during the term of said lease the said lessee shall not
enter into any illegal monopoly, combination, or trust with any privately owned
corporation engaged in the manufacture, production, and sale of fertilizer with the object
or effect of increasing the price of fertilizer to the farmer. [48 Stat. 61-63, as amended by
49 Stat. 1076, 66 Stat. 334, 73 Stat. 285, P.L. No. 94-412, sec. 501(d), and 118 Stat.
2966,16 U.S.C. sec. 831d] 4
Sec. 6. In the appointment of officials and the selection of employees for said
Corporation, and in the promotion of any such employees or officials, no political test or
qualification shall be permitted or given consideration, but all such appointments and
promotions shall be given and made on the basis of merit and efficiency. Any member of
said Board who is found by the President of the United States to be guilty of a violation
of this section shall be removed from office by the President of the United States, and any
appointee of said Board who is found by the Board to be guilty of a violation of this
section shall be removed from office by said Board. [48 Stat. 63, as amended by 118
Stat. 2966, 16 U.S.C. sec. 831e]
Sec. 7. In order to enable the Corporation to exercise the powers and duties vested
in it by this Act—
(a) The exclusive use, possession, and control of the United States nitrate plants
numbered 1 and 2, including steam plants, located, respectively, at Sheffield, Alabama,
and Muscle Shoals, Alabama, together with all real estate and buildings connected
therewith, all tools and machinery, equipment, accessories, and materials belonging
thereto, and all laboratories and plants used as auxiliaries thereto; the fixed-nitrogen
research laboratory, the Waco limestone quarry, in Alabama, and Dam Numbered 2,
located at Muscle Shoals, its power house, and all hydroelectric and operating
appurtenances (except the locks), and all machinery, lands, and buildings in connection
therewith, and all appurtenances thereof, and all other property to be acquired by the
Corporation in its own name or in the name of the United States of America, are hereby
entrusted to the Corporation for the purposes of this Act.
(b) The President of the United States is authorized to provide for the transfer to the
Corporation of the use, possession, and control of such other real or personal property of
the United States as he may from time to time deem necessary and proper for the
purposes of the Corporation as herein stated. [48 Stat. 63, 16 U.S.C. sec. 831f]
Sec. 8. (a) The Corporation shall maintain its principal office in the immediate
vicinity of Muscle Shoals, Alabama. The Corporation shall be held to be an inhabitant
and resident of the northern judicial district of Alabama within the meaning of the laws of
the United States relating to the venue of civil suits.
(b) The Corporation shall at all times maintain complete and accurate books of
accounts.

4

Subsection (n) of Section 5 is omitted from the United States Code as having been executed.

10

(c) Each member of the Board, before entering upon the duties of his office, shall
subscribe to an oath (or affirmation) to support the Constitution of the United States and
to faithfully and impartially perform the duties imposed upon him by this Act. [48 Stat.
63, as amended by 118 Stat. 2966, 16 U.S.C. sec. 831g]
Sec. 9. (a) The Board shall file with the President and with the Congress, in March
of each year, a financial statement and a complete report as to the business of the
Corporation covering the preceding governmental fiscal year. This report shall include
an itemized statement of the cost of power at each power station, the total number of
employees and the names, salaries, and duties of those receiving compensation at the rate
of more than $1,500 a year.
(b) All purchases and contracts for supplies or services, except for personal
services, made by the Corporation, shall be made after advertising, in such manner and at
such times sufficiently in advance of opening bids, as the Board shall determine to be
adequate to insure notice and opportunity for competition: Provided, That advertisement
shall not be required when, (1) an emergency requires immediate delivery of the supplies
or performance of the services; or (2) repair parts, accessories, supplemental equipment,
or services are required for supplies or services previously furnished or contracted for; or
(3) the aggregate amount involved in any purchase of supplies or procurement of services
does not exceed $25,000; in which cases such purchases of supplies or procurement of
services may be made in the open market in the manner common among businessmen:
Provided further, That in comparing bids and in making awards the Board may consider
such factors as relative quality and adaptability of supplies or services, the bidder's
financial responsibility, skill, experience, record of integrity in dealing, ability to furnish
repairs and maintenance services, the time of delivery or performance offered, and
whether the bidder has complied with the specifications.
(c) AUDITS.--The Comptroller General of the United States shall audit the
transactions of the Corporation at such times as he shall determine, but not less
frequently than once each governmental fiscal year, with personnel of his selection. In
such connection he and his representatives shall have free and open access to all papers,
books, records, files, accounts, plants, warehouse, offices, and all other things, property,
and places belonging to or under the control of or used or employed by the Corporation,
and shall be afforded full facilities for counting all cash and verifying transactions with
and balances in depositories. He shall make report of each such audit in quadruplicate,
one copy for the President of the United States, one for the chairman of the Board, one
for public inspection at the principal office of the Corporation, and the other to be
retained by him for the uses of the Congress: Provided, That such report shall not be
made until the Corporation shall have had reasonable opportunity to examine the
exceptions and criticisms of the Comptroller General or the General Accounting Office,
to point out errors therein, explain or answer the same, and to file a statement which shall
be submitted by the Comptroller General with his report. The expenses for each such
audit shall be paid from any appropriation or appropriations for the General Accounting
Office, and such part of such expenses as may be allocated to the cost of generating,
transmitting, and distributing electric energy shall be reimbursed promptly by the
Corporation as billed by the Comptroller General.5
5

While not expressly repealed, the provisions of the second paragraph of section 9(b) were superseded by 59
Stat. 599 (31 U.S.C. secs. 9105-9106).
11

Nothing in this Act shall be construed to relieve the Treasurer or other accountable
officers or employees of the Corporation from compliance with the provisions of existing
law requiring the rendition of accounts for adjustment and settlement pursuant to section
236, Revised Statutes, as amended by section 305 of the Budget and Accounting Act,
1921 (42 Stat. 24), and accounts for all receipts and disbursements by or for the
Corporation shall be rendered accordingly: Provided, That, subject only to the provisions
of the Tennessee Valley Authority Act of 1933, as amended, the Corporation is
authorized to make such expenditures and to enter into such contracts, agreements, and
arrangements, upon such terms and conditions and in such manner as it may deem
necessary, including the final settlement of all claims and litigation by or against the
Corporation; and, notwithstanding the provisions of any other law governing the
expenditure of public funds, the General Accounting Office, in the settlement of the
accounts of the Treasurer or other accountable officer or employee of the Corporation,
shall not disallow credit for, nor withhold funds because of, any expenditure which the
Board shall determine to have been necessary to carry out the provisions of said Act.
(d) ADMINISTRATIVE ACCOUNTS AND BUSINESS DOCUMENTS.--The
Corporation shall determine its own system of administrative accounts and the forms and
contents of its contracts and other business documents except as otherwise provided in
the Tennessee Valley Authority Act of 1933, as amended. [48 Stat. 63-64, as amended
by 49 Stat. 1080, 55 Stat. 775, 68 Stat. 968, 88 Stat. 390, 90 Stat. 377, 97 Stat. 1332, and
118 Stat. 2966-2967, 16 U.S.C. sec. 831h]
Sec. 9a. The Board is hereby directed in the operation of any dam or reservoir in its
possession and control to regulate the stream flow primarily for the purposes of
promoting navigation and controlling floods. So far as may be consistent with such
purposes, the Board is authorized to provide and operate facilities for the generation of
electric energy at any such dam for the use of the Corporation and for the use of the
United States or any agency thereof, and the Board is further authorized, whenever an
opportunity is afforded, to provide and operate facilities for the generation of electric
energy in order to avoid the waste of water power, to transmit and market such power as
in this Act provided, and thereby, so far as may be practicable, to assist in liquidating the
cost or aid in the maintenance of the projects of the Authority. [49 Stat. 1076, as
amended by 118 Stat. 2966,16 U.S.C. sec. 831h-1]
Sec. 10. The Board is hereby empowered and authorized to sell the surplus power
not used in its operations, and for operation of locks and other works generated by it, to
States, counties, municipalities, corporations, partnerships, or individuals, according to
the policies hereinafter set forth; and to carry out said authority, the Board is authorized
to enter into contracts for such sale for a term not exceeding twenty years, and in the sale
of such current by the Board it shall give preference to States, counties, municipalities,
and cooperative organizations of citizens or farmers, not organized or doing business for
profit, but primarily for the purpose of supplying electricity to its own citizens or
members; Provided, That all contracts made with private companies or individuals for the
sale of power, which power is to be resold for a profit, shall contain a provision
authorizing the Board to cancel said contract upon five years’ notice in writing, if the
Board needs said power to supply the demands of States, counties, or municipalities. In
order to promote and encourage the fullest possible use of electric light and power on

12

farms within reasonable distance of any of its transmission lines the Board in its
discretion shall have power to construct transmission lines to farms and small villages
that are not otherwise supplied with electricity at reasonable rates, and to make such rules
and regulations governing such sale and distribution of such electric power as in its
judgment may be just and equitable: Provided further, That the Board is hereby
authorized and directed to make studies, experiments, and determinations to promote the
wider and better use of electric power for agricultural and domestic use, or for small or
local industries, and it may cooperate with State governments, or their subdivisions or
agencies, with educational or research institutions, and with cooperatives or other
organizations, in the application of electric power to the fuller and better balanced
development of the resources of the region: Provided further, That the Board is
authorized to include in any contract for the sale of power such terms and conditions,
including resale rate schedules, and to provide for such rules and regulations as in its
judgment may be necessary or desirable for carrying out the purposes of this Act, and in
case the purchaser shall fail to comply with any such terms and conditions, or violate any
such rules and regulations, said contract may provide that it shall be voidable at the
election of the Board: Provided further, That in order to supply farms and small villages
with electric power directly as contemplated by this section, the Board in its discretion
shall have power to acquire existing electric facilities used in serving such farms and
small villages: And provided further, That the terms “States,” “counties,” and
“municipalities” as used in this Act shall be construed to include the public agencies of
any of them unless the context requires a different construction. [48 Stat. 64, as amended
by 49 Stat. 1076 and 118 Stat. 2966, 16 U.S.C. sec. 831i]
Sec. 11. It is hereby declared to be the policy of the Government so far as practical
to distribute and sell the surplus power generated at Muscle Shoals equitably among the
States, counties, and municipalities within transmission distance. This policy is further
declared to be that the projects herein provided for shall be considered primarily as for
the benefit of the people of the section as a whole and particularly the domestic and rural
consumers to whom the power can economically be made available, and accordingly that
sale to and use by industry shall be a secondary purpose, to be utilized principally to
secure a sufficiently high load factor and revenue returns which will permit domestic and
rural use at the lowest possible rates and in such manner as to encourage increased
domestic and rural use of electricity. It is further hereby declared to be the policy of the
Government to utilize the Muscle Shoals properties so far as may be necessary to
improve, increase, and cheapen the production of fertilizer ingredients by carrying out the
provisions of this Act. [48 Stat. 65, 16 U.S.C. sec. 831j]
Sec. 12. In order to place the Board upon a fair basis for making such contracts and
for receiving bids for the sale of such power, it is hereby expressly authorized, either
from appropriations made by Congress or from funds secured from the sale of such
power, or from funds secured by the sale of bonds hereafter provided for, to construct,
lease, purchase, or authorize the construction of transmission lines within transmission
distance from the place where generated, and to interconnect with other systems. The
Board is also authorized to lease to any person, persons, or corporation the use of any
transmission line owned by the Government and operated by the Board, but no such lease
shall be made that in any way interferes with the use of such transmission lines by the
Board: Provided, That if any State, county, municipality, or other public or cooperative

13

organization of citizens or farmers, not organized or doing business for profit but
primarily for the purpose of supplying electricity to its own citizens or members, or any
two or more of such municipalities or organizations, shall construct or agree to construct
and maintain a properly designed and built transmission line to the Government
reservation upon which is located a Government generating plant, or to a main
transmission line owned by the Government or leased by the Board and under the control
of the Board, the Board is hereby authorized and directed to contract with such State,
county, municipality, or other organization, or two or more of them, for the sale of
electricity for a term not exceeding thirty years; and in any such case the Board shall give
to such State, county, municipality, or other organization ample time to fully comply with
any local law now in existence or hereafter enacted providing for the necessary legal
authority for such State, county, municipality, or other organization to contract with the
Board for such power. Provided further, That all contracts entered into between the
Corporation and any municipality or other political subdivision or cooperative
organization shall provide that the electric power shall be sold and distributed to the
ultimate consumer without discrimination as between consumers of the same class, and
such contract shall be voidable at the election of the Board if a discriminatory rate,
rebate, or other special concession is made or given to any consumer or user by the
municipality or other political subdivision or cooperative organization: And provided
further, That as to any surplus power not so sold as above provided to States, counties,
municipalities, or other said organizations, before the Board shall sell the same to any
person or corporation engaged in the distribution and resale of electricity for profit, it
shall require said person or corporation to agree that any resale of such electric power by
said person or corporation shall be made to the ultimate consumer of such electric power
at prices that shall not exceed a schedule fixed by the Board from time to time as
reasonable, just, and fair; and in case of any such sale, if an amount is charged the
ultimate consumer which is in excess of the price so deemed to be just, reasonable, and
fair by the Board, the contract for such sale between the Board and such distributor of
electricity shall be voidable at the election of the Board: And provided further, That the
Board is hereby authorized to enter into contracts with other power systems for the
mutual exchange of unused excess power upon suitable terms, for the conservation of
stored water, and as an emergency or breakdown relief. [48 Stat. 65-66, as amended by
118 Stat. 2966, 16 U.S.C. sec. 831k]
Sec. 12a. In order (1) to facilitate the disposition of the surplus power of the
Corporation according to the policies set forth in this Act; (2) to give effect to the priority
herein accorded to States, counties, municipalities, and nonprofit organizations in the
purchase of such power by enabling them to acquire facilities for the distribution of such
power; and (3) at the same time to preserve existing distribution facilities as going
concerns and avoid duplication of such facilities, the Board is authorized to advise and
cooperate with and assist, by extending credit for a period of not exceeding five years to
States, counties, municipalities and non-profit organizations situated within transmission
distance from any dam where such power is generated by the Corporation in acquiring,
improving, and operating (a) existing distribution facilities and incidental works,
including generating plants; and (b) interconnecting transmission lines; or in acquiring
any interest in such facilities, incidental works, and lines. [49 Stat. 1076-1077, as
amended by 118 Stat. 2966, 16 U.S.C. sec. 831k-1]

14

Sec. 13. In order to render financial assistance to those States and local
governments in which the power operations of the Corporation are carried on and in
which the Corporation has acquired properties previously subject to State and local
taxation, the Board is authorized and directed to pay to said States, and the counties
therein, for each fiscal year, beginning July 1, 1940, the following percentages of the
gross proceeds derived from the sale of power by the Corporation for the preceding fiscal
year as hereinafter provided, together with such additional amounts as may be payable
pursuant to the provisions hereinafter set forth, said payments to constitute a charge
against the power operations of the Corporation: For the fiscal year (beginning July 1,
1940, 10 per centum; 1941, 9 per centum; 1942, 8 per centum; 1943, 7-1/2 per centum;
1944, 7 per centum; 1945, 6-1/2 per centum; 1946, 6 per centum; 1947,
5-1/2 per centum; 1948 and each fiscal year thereafter, 5 per centum.6 “Gross proceeds,”
as used in this section, is defined as the total gross proceeds derived by the Corporation
from the sale of power for the preceding fiscal year, excluding power used by the
Corporation or sold or delivered to any other department or agency of the Government of
the United States for any purpose other than the resale thereof. The payments herein
authorized are in lieu of taxation, and the Corporation, its property, franchises and
income, are hereby expressly exempted from taxation in any manner or form by any
State, county, municipality, or any subdivision or district thereof.
The payment for each fiscal year shall be apportioned among said States in the
following manner: One-half of said payment shall be apportioned by paying to each State
the percentage thereof which the gross proceeds of the power sales by the Corporation
within said State during the preceding fiscal year bears to the total gross proceeds from
all power sales by the Corporation during the preceding fiscal year; the remaining onehalf of said payment shall be apportioned by paying to each State the percentage thereof
which the book value of the power property held by the Corporation within said State at
the end of the preceding fiscal year bears to the total book value of all such property held
by the Corporation on the same date. The book value of power property shall include
that portion of the investment allocated or estimated to be allocable to power: Provided,
That the minimum annual payment to each State (including payments to counties therein)
shall not be less than an amount equal to the two-year average of the State and local ad
valorem property taxes levied against power property purchased and operated by the
Corporation in said State and against that portion of reservoir lands related to dams
constructed by or an behalf of the United States Government and held or operated by the
Corporation and allocated or estimated to be allocable to power. The said two-year
average shall be calculated for the last two years during which said property was
privately owned and operated or said land was privately owned: Provided further, That
the minimum annual payment to each State in which the Corporation owns and operates
power property (including payments to counties therein) shall not be less than $10,000 in
any case: Provided further, That the corporation shall pay directly to the respective
counties the two-year average of county ad valorem property taxes (including taxes
levied by taxing districts within the respective counties) upon power property and
6

Section 114(a) of P.L. No. 94-274 directed TVA to make payments in lieu of taxes for the fiscal year
transition period from July 1, 1976, through September 30, 1976, in a manner that was consistent with the
payments made for the immediately preceding fiscal year.

15

reservoir lands allocable to power, determined as above provided, and all payments to
any such county within a State shall be deducted from the payment otherwise due to such
State under the provisions of this section. The determination of the Board of the amounts
due hereunder to the respective States and counties shall be final.
The payments above provided shall in each case be made to the State or county in
equal monthly installments beginning not later than July 31, 1940.
Nothing herein shall be construed to limit the authority of the Corporation in its
contracts for the sale of power to municipalities, to permit or provide for the resale of
power at rates which may include an amount to cover tax-equivalent payments to the
municipality in lieu of State, county, and municipal taxes upon any distribution system or
property owned by the municipality, or any agency thereof, conditioned upon a proper
distribution by the municipality of any amounts collected by it in lieu of State or county
taxes upon any such distribution system or property; it being the intention of Congress
that either the municipality or the State in which the municipality is situated shall provide
for the proper distribution to the State and county of any portion of tax equivalent so
collected by the municipality in lieu of State or county taxes upon any such distribution
system or property.
The Corporation shall, not later than January 1, 1945, submit to the Congress a
report on the operation of the provisions of this section, including a statement of the
distribution to the various States and counties hereunder; the effect of the operation of the
provisions of this section on State and local finances; an appraisal of the benefits of the
program of the Corporation to the States and counties receiving payments hereunder, and
the effect of such benefits in increasing taxable values within such States and counties;
and such other date, information, and recommendations as may be pertinent to future
legislation. [48 Stat. 66, as amended by 54 Stat. 626-627 and 118 Stat. 2966, 16 U.S.C.
sec. 831l]
Sec. 14. The Board shall make a thorough investigation as to the present value of
Dam Numbered 2, and the steam plants at nitrate plant numbered 1, and nitrate plant
numbered 2, and as to the cost of Cove Creek Dam, for the purpose of ascertaining how
much of the value or the cost of said properties shall be allocated and charged up to (1)
flood control, (2) navigation, (3) fertilizer, (4) national defense, and (5) the development
of power. The findings thus made by the Board, when approved by the President of the
United States, shall be final, and such findings shall thereafter be used in all allocation of
value for the purpose of keeping the book value of said properties. In like manner, the
cost and book value of any dams, steam plants, or other similar improvements hereafter
constructed and turned over to said Board for the purpose of control and management
shall be ascertained and allocated.
The Board shall on or before January 1, 1937, file with Congress a statement of its
allocation of the value of all such properties turned over to said Board, and which have
been completed prior to the end of the preceding fiscal year, and shall thereafter in its
annual report to Congress file a statement of its allocation of the value of such properties
as have been complete during the preceding fiscal year.
For the purpose of accumulating data useful to the Congress in the formulation of
legislative policy in matters relating to the generation, transmission, and distribution of
electric energy and the production of chemicals necessary to national defense and useful
in agriculture, and to the Federal Power Commission and other Federal and State

16

agencies, and to the public, the Board shall keep complete accounts of its costs of
generation, transmission, and distribution of electric energy and shall keep a complete
account of the total cost of generating and transmission facilities constructed or otherwise
acquired by the Corporation, and of producing such chemicals, and a description of the
major components of such costs according to such uniform system of accounting for
public utilities as the Federal Power Commission has, and if it has none, then it is hereby
empowered and directed to prescribe such uniform system of accounting, together with
records of such other physical data and operating statistics of the Authority as may be
helpful in determining the actual cost and value of services, and the practices, methods,
facilities, equipment, appliances, and standards and sizes, types, location, and
geographical and economic integration of plants and systems best suited to promote the
public interest, efficiency, and the wider and more economical use of electric energy.
Such data shall be reported to the Congress by the Board from time to time with
appropriate analyses and recommendations, and, so far as practicable, shall be made
available to the Federal Power Commission and other Federal and State agencies which
may be concerned with the administration of legislation relating to the generation,
transmission, or distribution of electric energy and chemicals useful to agriculture. It is
hereby declared to be the policy of this Act that, in order, as soon as practicable, to make
the power projects self-supporting and self-liquidating, the surplus power shall be sold at
rates which, in the opinion of the Board, when applied to the normal capacity of the
Authority's power facilities, will produce gross revenues in excess of the cost of
production of said power and in addition to the statement of the cost of power at each
power station as required by section 9(a) of the “Tennessee Valley Act of 1933,” the
Board shall file with each annual report, a statement of the total cost of all power
generated by it at all power stations during each year, the average cost of such power per
kilowatt hour, the rates at which sold, and to whom sold, and copies of all contracts for
the sale of power. [48 Stat. 66, as amended by 49 Stat. 1077 and 118 Stat. 2966, 16
U.S.C. sec. 831m]
Sec. 15. In the construction of any future dam, steam plant, or other facility, to be
used in whole or in part for the generation or transmission of electric power the Board is
hereby authorized and empowered to issue on the credit of the United States and to sell
serial bonds not exceeding $50,000,000 in amount, having a maturity not more than fifty
years from the date of issue thereof, and bearing interest not exceeding 3-1/2 per centum
per annum. Said bonds shall be issued and sold in amounts and prices approved by the
Secretary of the Treasury, but all such bonds as may be so issued and sold shall have
equal rank. None of said bonds shall be sold below par, and no fee, commission, or
compensation whatever shall be paid to any person, firm, or corporation for handling,
negotiating the sale, or selling the said bonds. All of such bonds so issued and sold shall
have all the rights and privileges accorded by law to Panama Canal bonds, authorized by
section 8 of the Act of June 28, 1902, chapter 1302, as amended by the Act of December
21, 1905 (ch. 3, sec. 1, 34 Stat. 5), as now compiled in section 743 of title 31 of the
United States Code. All funds derived from the sale of such bonds shall be paid over to
the Corporation. [48 Stat. 66-67, as amended by 118 Stat. 2966,16 U.S.C. sec. 831n]
Sec. 15a. With the approval of the Secretary of the Treasury, the Corporation is
authorized to issue bonds not to exceed in the aggregate $50,000,000 outstanding at any
one time, which bonds may be sold by the Corporation to obtain funds to carry out the

17

provisions of section 12a of this Act. Such bonds shall be in such forms and
denominations, shall mature within such periods not more than fifty years from the date
of their issue, may be redeemable at the option of the Corporation before maturity in such
manner as may be stipulated therein, shall bear such rates of interest not exceeding 3-1/2
per centum per annum, shall be subject to such terms and conditions, shall be issued in
such manner and amount, and sold at such prices, as may be prescribed by the
Corporation, with the approval of the Secretary of the Treasury: Provided, That such
bonds shall not be sold at such prices or on such terms as to afford an investment yield to
the holders in excess of 3-1/2 per centum per annum. Such bonds shall be fully and
unconditionally guaranteed both as to interest and principal by the United States, and
such guaranty shall be expressed on the face thereof, and such bonds 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 the United States
or any officer or officers thereof. In the event that the Corporation should not pay upon
demand, when due, the principal of, or interest on, such bonds, the Secretary of the
Treasury shall pay to the holder the amount thereof, which is hereby authorized to be
appropriated out of any moneys in the Treasury not otherwise appropriated, and
thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed
to all the rights of the holders of such bonds. The Secretary of the Treasury, in his
discretion, is authorized to purchase any bonds issued hereunder, and for such purpose
the Secretary of the Treasury is authorized to use as a public-debt transaction the
proceeds from the sale of any securities hereafter issued under the Second Liberty Bond
Act, as amended, and the purposes for which securities may be issued under such Act, as
amended, are extended to include any purchases of the Corporation’s bonds hereunder.
The Secretary of the Treasury may, at any time, sell any of the bonds of the Corporation
acquired by him under this section. All redemptions, purchases, and sales by the
Secretary of the Treasury of the bonds of the Corporation shall be treated as public-debt
transactions of the United States. With the approval of the Secretary of the Treasury, the
Corporation shall have power to purchase such bonds in the open market at any time and
at any price. No bonds shall be issued hereunder to provide funds or bonds necessary for
the performance of any proposed contract negotiated by the Corporation under the
authority of section 12a of this Act until the proposed contract shall have been submitted
to and approved by the Federal Power Commission. When any such proposed contract
shall have been submitted to the said Commission, the matter shall be given precedence
and shall be in every way expedited and the Commission’s determination of the matter
shall be final. The authority of the Corporation to issue bonds hereunder shall expire at
the end of five years from the date when this section as amended herein becomes law,
except that such bonds may be issued at any time after the expiration of said period to
provide bonds or funds necessary for the performance of any contract entered into by the
Corporation, prior to the expiration of said period, under the authority of section 12a of
this Act. [49 Stat. 1078, 16 U.S.C. sec. 831n-1]
Sec. 15b. No bonds shall be issued by the Corporation after the date of enactment
of this section under section 15 or section 15a. [53 Stat. 1083, 16 U.S.C. sec. 831n-2]
Sec. 15c. With the approval of the Secretary of the Treasury the Corporation is
authorized, after the date of enactment of this section, to issue bonds not to exceed in the

18

aggregate $61,500,000. Such bonds may be sold by the Corporation to obtain funds
which may be used for the following purposes only:
(1) Not to exceed $46,000,000 may be used for the purchase of electric utility
properties of the Tennessee Electric Power Company and Southern Tennessee
Power Company as contemplated in the contract between the Corporation and the
Commonwealth and Southern Corporation and others, dated as of May 12, 1939.
(2) Not to exceed $6,500,000 may be used for the purchase and rehabilitation
of electric utility properties of the Alabama Power Company and Mississippi Power
Company in the following named counties in northern Alabama and northern
Mississippi: The counties of Jackson, Madison, Limestone, Lauderdale, Colbert,
Lawrence, Morgan, Marshall, DeKalb, Cherokee, Cullman, Winston, Franklin,
Marion, and Lamar in northern Alabama, and the counties of Calhoun, Chickasaw,
Monroe, Clay, Lowndes, Oktibbeha, Choctaw, Webster, Noxubee, Winston,
Neshoba, and Kemper in northern Mississippi.
(3) Not to exceed $3,500,000 may be used for rebuilding, replacing, and
repairing electric utility properties purchased by the Corporation in accordance with
the foregoing provisions of this section.
(4) Not to exceed $3,500,000 may be used for constructing electric
transmission lines, substations, and other electrical facilities necessary to connect
the electric utility properties purchased by the Corporation in accordance with the
foregoing provisions of this section with the electric power system of the
Corporation.
(5) Not to exceed $2,000,000 may be used for making loans under section 12a
to States, counties, municipalities, and nonprofit organizations to enable them to
purchase any electric utility properties referred to in the contract between the
Corporation and the Commonwealth and Southern Corporation and others, dated as
of May 12, 1939, or any electric utility properties of the Alabama Power Company
or Mississippi Power Company in any of the counties in northern Alabama or
northern Mississippi named in paragraph (2).
The Corporation shall file with the President and with the Congress in December of
each year a financial statement and complete report as to the expenditure of funds derived
from the sale of bonds under this section covering the period not covered by an such
previous statement or report. Such bonds shall be in such forms and denominations, shall
mature within such periods not more than fifty years from the date of their issue, may be
redeemable at the option of the Corporation before maturity in such manner as may be
stipulated therein, shall bear such rates of interest not exceeding 3-1/2 per centum per
annum, shall be subject to such terms and conditions, shall be issued in such manner and
amount, and sold at such prices, as may be prescribed by the Corporation with the
approval of the Secretary of the Treasury: Provided, That such bonds shall not be sold at
such prices or on such terms as to afford an investment yield to the holders in excess of
3-1/2 per centum per annum. Such bonds shall be fully and unconditionally guaranteed
both as to interest and principal by the United States, and such guaranty shall be
expressed on the face thereof, and such bonds shall be lawful investments, and may be
accepted as security for fiduciary, trust, and public funds, the investment or deposit of
which shall be under the authority or control of the United States or any officer or
officers thereof. In the event that the Corporation should not pay upon demand when

19

due, the principal of, or interest on, such bonds, the Secretary of the Treasury shall pay to
the holder the amount thereof, which is hereby authorized to be appropriated out of any
moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the
amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders
of such bonds. The Secretary of the Treasury, in his discretion, is authorized to purchase
any bonds issued hereunder, and for such purpose the Secretary of the Treasury is
authorized to use as a public-debt transaction the proceeds from the sale of any securities
hereafter issued under the Second Liberty Bond Act, as amended, and the purposes for
which securities may be issued under such Act, as amended, are extended to include any
purchases of the Corporation’s bonds hereunder. The Secretary of the Treasury may, at
any time, sell any of the bonds of the Corporation acquired by him under this section. All
redemptions, purchases, and sales by the Secretary of the Treasury of the bonds of the
Corporation shall be treated as public-debt transactions of the United States. With the
approval of the Secretary of the Treasury, the Corporation shall have power to purchase
such bonds in the open market at any time and at any price. None of the proceeds of the
bonds shall be used for the performance of any proposed contract negotiated by the
Corporation under the authority of section 12a of this Act until the proposed contract
shall have been submitted to and approved by the Federal Power Commission. When any
such proposed contract shall have been submitted to the said Commission, the matter
shall be given precedence and shall be in every way expedited and the Commission’s
determination of the matter shall be final. The authority of the Corporation to issue
bonds under this section shall expire January 1, 1941, except that if at the time such
authority expires the amount of bonds issued by the Corporation under this section is less
than $61,500,000, the Corporation may, subject to the foregoing provisions of this
section, issue, after the expiration of such period, bonds in an amount not in excess of the
amount by which the bonds so issued prior to the expiration of such period is less than
$61,500,000 for refunding purposes, or, subject to the provisions of paragraph (5) of this
section (limiting the purposes for which loans under section 12a of funds derived from
bond proceeds may be made) to provide funds found necessary in the performance of any
contract entered into by the Corporation prior to the expiration of such period, under the
authority of section 12a. [53 Stat. 1083-1085, 16 U.S.C. sec. 831n-3]
Sec. 15d. (a) The Corporation is authorized to issue and sell bonds, notes and other
evidences of indebtedness (hereinafter collectively referred to as “bonds”) in an amount
not exceeding $30,000,000,000 outstanding at any one time to assist in financing its
power program and to refund such bonds. The Corporation may, in performing functions
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 lease, lease-purchase, or any contract for the power output of any
such plant or other facility; and for other purposes incidental thereto. Unless otherwise
specifically authorized by Act of Congress the Corporation shall make no contracts for
the sale or delivery of power which would have the effect of making 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, and such additional area extending not more than five miles around the periphery

20

of such area as may be necessary to care for the growth of the Corporation and its
distributors within said area: Provided, however, That such additional area shall not in
any event increase by more than 2-1/2 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; And provided 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 municipality 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 distributors from
supplying electric power to any customer within any area in which the Corporation or its
distributors had generally established 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 Corporation had such arrangements on July 1, 1957, nor
prevent the Corporation 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, Kentucky; Hickman, Kentucky; Chickamauga, Georgia;
Ringgold, 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 in 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 facility
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 the

21

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 concerning the 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 marketability 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 any other law.
(b) Bonds issued by the Corporation hereunder shall not be obligations 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
operations and the expenditure of such proceeds shall not be subject to apportionment
under the provisions of Revised Statutes 3679, as amended (31 U.S.C. 665).7
(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 interest 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 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 proposed
issue, which the Secretary is directed to purchase. In case the Corporation determines
that a proposed issue of bonds hereunder cannot be sold on reasonable terms, it may issue
to the Secretary interim obligations which the Secretary is authorized to purchase.
Notwithstanding the foregoing provisions of this subsection, obligations issued by the
Corporation to the Secretary shall not exceed $150,000,000 outstanding 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
7

With the codification of title 31, U.S.C., by 96 Stat. 990, these provisions of Revised Statutes 3679 were
included in 31 U.S.C. secs. 1511-1519.

22

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 without 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 Treasury 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 Corporation may sell its
bonds by negotiation or on the basis of competitive 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 operations 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),8 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
statement 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 estate, 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 bond contract, the Corporation shall,
beginning with fiscal year 1961, make payments into the Treasury as miscellaneous
receipts on or before September 30, of each fiscal year as a return on the appropriation
investment in the Corporation’s power facilities, plus a repayment sum of not less than
8

With the codification of title 31, U.S.C., by 96 Stat. 990, the provisions of sections 105 and 106 of the Act of
December 6, 1945, were included in 31 U.S.C. secs. 9105-9106.

23

$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 appropriation investment shall have been repaid.9 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 in 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 II of the Government
Corporations Appropriation Act, 1948, this Act, or other applicable 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 control of the
Corporation.
(f) The Corporation shall charge rates for power which will produce gross revenues
sufficient to provide funds for operation, maintenance, and administration of its power
system; payments to States and counties in lieu of taxes; debt service on outstanding
bonds, including 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 Corporation’s power business having due regard for the
primary objectives 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 investment 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 effective date of this
section, shall apply net power proceeds either in reduction (directly or through payments
into reserve or sinking funds) of its capital obligations, including bonds and the
appropriation investment, 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 expenditures applicable to its power properties
plus the net proceeds realized from any disposition of power facilities in said period. As

9

Section 114(b) of P.L. No. 94-274 directed TVA to make a payment of $5,000,000 on September 30, 1976, as
repayment of the appropriation investment plus a payment as a return on the appropriation investment for the
fiscal year transition period from July 1, 1976, through September 30, 1976, computed at the average interest
rate payable by the Treasury upon its total marketable public obligations as of July 1, 1976, applied to the
balance of appropriations as of July 1, 1976.

24

of October 1, 1975, the five-year periods described herein shall be computed as
beginning on October 1 of that year and of each fifth year thereafter.
(g) Power generating and related facilities operated by the Corporation under lease
and lease-purchase agreements shall constitute power property held by the Corporation
within the meaning of section 13 of this Act, but that portion of the payment due for any
fiscal year under said section 13 to a State where such facilities are located 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
facilities to said State and to local taxing jurisdictions therein. In connection 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 may convey, in the
name of the United States by deed, lease, or otherwise, any real property 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 development 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 provided herein, and this section shall be
construed to effectuate such intent. [73 Stat. 280 as amended by 73 Stat. 338, 80 Stat.
346, 84 Stat. 915, 89 Stat. 750, and 90 Stat. 376, and P.L. No. 96-97 (Oct. 31, 1979), 16
U.S.C. sec. 831n-4]
Sec. 16. The Board, whenever the President deems it advisable, is hereby
empowered and directed to complete Dam Numbered 2 at Muscle Shoals, Alabama, and
the steam plant at nitrate plant numbered 2, in the vicinity of Muscle Shoals, by installing
in Dam Numbered 2 the additional power units according to the plans and specifications
of said dam, and the additional power unit in the steam plant at nitrate plant numbered 2.
[48 Stat. 67, as amended by 118 Stat. 2966, 16 U.S.C. sec. 831o]
Sec. 17. The Secretary of War, or the Secretary of the Interior, is hereby authorized
to construct, either directly or by contract to the lowest responsible bidder, after due
advertisement, a dam in and across Clinch River in the State of Tennessee, which has by
long custom become known and designated as the Cove Creek Dam, together with a
transmission line from Muscle Shoals, according to the latest and most approved designs,
including power house and hydroelectric installations and equipment for the generation
of power, in order that the waters of the said Clinch River may be impounded and stored
above said dam for the purpose of increasing and regulating the flow of the Clinch River
and the Tennessee River below, so that the maximum amount of primary power may be
developed at Dam Numbered 2 and at any and all other dams below the said Cove Creek
Dam: Provided, however, That the President is hereby authorized by appropriate order to
direct the employment by the Secretary of War, or by the Secretary of the Interior, of
such engineer or engineers as he may designate, to perform such duties and obligations as
he may deem proper, either in the drawing of plans and specifications for said dam, or to
perform any other work in the building or construction of the same. The President may,

25

by such order, place the control of the construction of said dam in the hands of such
engineer or engineers taken from private life as he may desire: And provided further,
That the President is hereby expressly authorized, without regard to the restriction or
limitation of any other statute, to select attorneys and assistants for the purpose of making
any investigation he may deem proper to ascertain whether, in the control and
management of Dam Numbered 2, or any other dam or property owned by the
Government in the Tennessee River Basin, or in the authorization of any improvement
therein, there has been any undue or unfair advantage given to private persons,
partnerships, or corporations, by any officials or employees of the Government, or
whether in any such matters the Government has been injured or unjustly deprived of any
of its rights. [48 Stat. 67, 16 U.S.C. sec. 831p] 10
Sec. 18. In order to enable and empower the Secretary of War, the Secretary of the
Interior, or the Board to carry out the authority hereby conferred, in the most economical
and efficient manner, he or it is hereby authorized and empowered in the exercise of the
powers of national defense in aid of navigation, and in the control of the flood waters of
the Tennessee and Mississippi Rivers, constituting channels of interstate commerce, to
exercise the right of eminent domain for all purposes of this Act, and to condemn all
lands, easements, rights of way, and other area necessary in order to obtain a site for said
Cove Creek Dam, and the flowage rights for the reservoir of water above said dam, and
to negotiate and conclude contracts with States, counties, municipalities, and all State
agencies and with railroads, railroad corporations, common carriers, and all public utility
commissions and any other person, firm, or corporation, for the relocation of railroad
tracks, highways, highway bridges, mills, ferries, electric-light plants, and any and all
other properties, enterprises, and projects whose removal may be necessary in order to
carry out the provisions of this Act. When said Cove Creek Dam, transmission line, and
power house shall have been completed, the possession, use, and control thereof shall be
entrusted to the Corporation for use and operation in connection with the general
Tennessee Valley project, and to promote flood control and navigation in the Tennessee
River. [48 Stat. 67-68, as amended by 118 Stat. 2966, 16 U.S.C. sec. 831q]
Sec. 19. The Corporation, as an instrumentality and agency of the Government of
the United States for the purpose of executing its constitutional powers, shall have access
to the United States Patent and Trademark Office for the purpose of studying,
ascertaining, and copying all methods, formula, and scientific information (not including
access to pending applications for patents) necessary to enable the Corporation to use and
employ the most efficacious and economical process for the production of fixed nitrogen,
or any essential ingredient of fertilizer, or any method of improving and cheapening the
production of hydroelectric power, and any owner of a patent whose patent rights may
have been thus in any way copied, used, infringed, or employed by the exercise of this
authority by the Corporation shall have as the exclusive remedy a cause of action against
the Corporation to be instituted and prosecuted on the equity side of the appropriate
district court of the United States, for the recovery of reasonable compensation for such
infringement. The Under Secretary of Commerce for Intellectual Property and Director
of the United States Patent and Trademark Office shall furnish to the Corporation, at its
request and without payment of fees, copies of documents on file in his office: Provided,
10

Text of section 17 is omitted from the United States Code as having been executed.

26

That the benefits of this section shall not apply to any art, machine, method of
manufacture, or composition of matter, discovered or invented by such employee during
the time of his employment or service with the Corporation or with the Government of
the United States. [48 Stat. 68, as amended by 113 Stat. 1536, 1501A-583, 16 U.S.C.
sec. 831r]
Sec. 20. The Government of the United States hereby reserves the right, in case of
war or national emergency declared by Congress, to take possession of all or any part of
the property described or referred to in this Act for the purpose of manufacturing
explosives or for other war purposes; but, if this right is exercised by the Government, it
shall pay the reasonable and fair damages that may be suffered by any party whose
contract for the purchase of electric power or fixed nitrogen or fertilizer ingredients is
hereby violated, after the amount of the damages has been fixed by the United States
Claims Court in proceedings instituted and conducted for that purpose under rules
prescribed by the court. [48 Stat. 68, as amended by 96 Stat. 49, 16 U.S.C. sec. 831s]
Sec. 21. (a) All general penal statutes relating to the larceny, embezzlement,
conversion, or to the improper handling, retention, use, or disposal of public moneys or
property of the United States, shall apply to the moneys and property of the Corporation
and to moneys and properties of the United States entrusted to the Corporation.
(b) Any person who, with intent to defraud the Corporation, or to deceive any
director, officer, or employee of the Corporation or any officer or employee of the United
States (1) makes any false entry in any book of the Corporation, or (2) makes any false
report or statement for the Corporation, shall, upon conviction thereof, be fined not more
than $10,000 or imprisoned not more than five years, or both.
(c) Any person who shall receive any compensation, rebate, or reward, or shall enter
into any conspiracy, collusion, or agreement, express or implied, with intent to defraud
the Corporation or wrongfully and unlawfully to defeat its purposes, shall, on conviction
thereof, be fined not more than $5,000 or imprisoned not more than five years, or both.
[48 Stat. 68-69, 16 U.S.C. sec. 831t]
Sec. 22. To aid further the proper use, conservation, and development of the natural
resources of the Tennessee River drainage basin and of such adjoining territory as may be
related to or materially affected by the development consequent to this Act, and to
provide for the general welfare of the citizens of said areas, the President is hereby
authorized, by such means or methods as he may deem proper within the limits of
appropriations made therefor by Congress, to make such surveys of and general plans for
said Tennessee basin and adjoining territory as may be useful to the Congress and to the
several States in guiding and controlling the extent, sequence, and nature of development
that may be equitably and economically advanced through the expenditure of public
funds, or through the guidance or control of public authority, all for the general purpose
of fostering an orderly and proper physical, economic, and social development of said
areas; and the President is further authorized in making said surveys and plans to
cooperate with the States affected thereby, or subdivisions or agencies of such States, or
with cooperative or other organizations, and to make such studies, experiments, or
demonstrations as may be necessary and suitable to that end. [48 Stat. 69, 16 U.S.C. sec.
831u]
Sec. 23. The President shall, from time to time, as the work provided for in the
preceding section progresses, recommend to Congress such legislation as he deems
proper to carry out the general purposes stated in said section, and for the especial
27

purpose of bringing about in said Tennessee drainage basin and adjoining territory in
conformity with said general purposes (1) the maximum amount of flood control; (2) the
maximum development of said Tennessee River for navigation purposes; (3) the
maximum generation of electric power consistent with flood control and navigation;
(4) the proper use of marginal lands; (5) the proper method of reforestation of all lands in
said drainage basin suitable for reforestation; and (6) the economic and social well-being
of the people living in said river basin. [48 Stat. 69, 16 U.S.C. sec. 831v]
Sec. 24. For the purpose of securing any rights of flowage, or obtaining title to or
possession of any property, real or personal, that may be necessary or may become
necessary, in the carrying out of any of the provisions of this Act, the President of the
United States for a period of three years from the date of the enactment of this Act, is
hereby authorized to acquire title in the name of the United States to such rights or such
property, and to provide for the payment for same by directing the Board to contract to
deliver power generated at any of the plants now owned or hereafter owned or
constructed by the Government or by said Corporation, such future delivery of power to
continue for a period not exceeding thirty years. Likewise, for one year after the
enactment of this Act, the President is further authorized to sell or lease any parcel or part
of any vacant real estate now owned by the Government in said Tennessee River Basin,
to persons, firms, or corporations who shall contract to erect thereon factories or
manufacturing establishments, and who shall contract to purchase of said Corporation
electric power for the operation of any such factory or manufacturing establishment. No
contract shall be made by the President for the sale of any of such real estate as may be
necessary for present or future use on the part of the Government for any of the purposes
of this Act. Any such contract made by the President of the United States shall be carried
out by the Board: Provided, That no such contract shall be made that will in any way
abridge or take away the preference right to purchase power given in this Act to States,
counties, municipalities, or farm organizations: Provided further, That no lease shall be
for a term to exceed fifty years: Provided further, That any sale shall be on condition that
said land shall be used for industrial purposes only. [48 Stat. 69-70, as amended by 118
Stat. 2966, 16 U.S.C. sec. 831w]
Sec. 25. The Corporation may cause proceedings to be instituted for the acquisition
by condemnation of any lands, easements, or rights of way, which, in the opinion of the
Corporation, are necessary to carry out the provisions of this Act. The proceedings shall
be instituted in the United States district court for the district in which the land, easement,
right of way, or other interest, or any part thereof, is located, and such court shall have
full jurisdiction to divest the complete title to the property sought to be acquired out of all
persons or claimants and vest the same in the United States in fee simple, and to enter a
decree quieting the title hereto in the United States of America. [48 Stat. 70, as amended
by 62 Stat. 991, 63 Stat. 107, 66 Stat. 591, and 82 Stat. 885, 16 U.S.C. sec. 831x]
Sec. 26. Commencing July 1, 1936, the proceeds for each fiscal year derived by the
Board from the sale of power or any other products manufactured by the Corporation,
and from any other activities of the Corporation including the disposition of any real or
personal property, shall be paid into the Treasury of the United States on March 31 of
each year, save and except such part of such proceeds as in the opinion of the Board shall
be necessary for the Corporation in the operation of dams and reservoirs, in conducting
its business in generating, transmitting, and distributing electric energy and in

28

manufacturing, selling, and distributing fertilizer and fertilizer ingredients.11 A
continuing fund of $1,000,000 is also excepted from the requirements of this section and
may be withheld by the Board to defray emergency expenses and to insure continuous
operation: Provided, That nothing in this section shall be construed to prevent the use by
the Board, after June 30, 1936, of proceeds accruing prior to July 1, 1936, for the
payment of obligations lawfully incurred prior to such latter date. [48 Stat. 71, as
amended by 49 Stat. 1079, 90 Stat. 380, and 118 Stat. 2966, 16 U.S.C. sec. 831y]
Sec. 26a. The unified development and regulation of the Tennessee River system
requires that no dam, appurtenant works, or other obstruction, affecting navigation, flood
control, or public lands or reservations shall be constructed, and thereafter operated or
maintained across, along, or in the said river or any of its tributaries until plans for such
construction, operation, and maintenance shall have been submitted to and approved by
the Board; and the construction, commencement of construction, operation, or
maintenance of such structures without such approval is hereby prohibited. When such
plans shall have been approved, deviation therefrom either before or after completion of
such structures is prohibited unless the modification of such plans has previously been
submitted to and approved by the Board.
In the event the Board shall, within sixty days after their formal submission to the
Board, fail to approve any plans or modifications, as the case may be, for construction,
operation, or maintenance of any such structures on the Little Tennessee River, the above
requirements shall be deemed satisfied, if upon application to the Secretary of War, with
due notice to the Corporation, and hearing thereon, such plans or modifications are
approved by the said Secretary of War as reasonably adequate and effective for the
unified development and regulation of the Tennessee River system.
Such construction, commencement of construction, operation, or maintenance of
any structure or parts thereof in violation of the provisions of this section may be
prevented, and the removal or discontinuation thereof required by the injunction or order
of any district court exercising jurisdiction in any district in which such structures or
parts thereof may be situated, and the Corporation is hereby authorized to bring
appropriate proceedings to this end.
The requirements of this section shall not be construed to be a substitute for the
requirements of any other law of the United States or of any State, now in effect or
hereafter enacted, but shall be in addition thereto, so that any approval, license, permit or
other sanction now or hereafter required by the provisions of any such law for the
construction, operation, or maintenance of any structures whatever, except such as may
be constructed, operated or maintained by the Corporation shall be required,
notwithstanding the provisions of this section. [49 Stat. 1079, as amended by 118 Stat.
2966, 16 U.S.C. sec. 831y-1]
Sec. 27. All appropriations necessary to carry out the provisions of this Act are
hereby authorized. [48 Stat. 71, 16 U.S.C. sec. 831z]

11

Section 205(5) of P.L. No. 94-274 provided that for the purposes of section 26 of the TVA Act the fiscal
year transition period from July 1, 1976, through September 30, 1976, shall be treated as part of the fiscal year
beginning October 1, 1976.

29

Sec. 28. That all Acts or parts of Acts in conflict herewith are hereby repealed, so
far as they affect the operations contemplated by this Act. [48 Stat. 71, 16 U.S.C. sec.
831aa]
Sec. 29. The right to alter, amend, or repeal this Act is hereby expressly declared
and reserved, but no such amendment or repeal shall operate to impair the obligation of
any contract made by said Corporation under any power conferred by this Act. [48 Stat.
72, 16 U.S.C. sec. 831bb]
Sec. 30. The sections of this Act are hereby declared to be separable, and in the
event any one or more sections of this Act be held to be unconstitutional, the same shall
not affect the validity of other sections of this Act. [48 Stat. 72, 16 U.S.C. sec. 831cc]12
Sec. 31. This Act shall be liberally construed to carry out the purposes of Congress
to provide for the disposition of and make needful rules and regulations respecting
Government properties entrusted to the Authority, provide for the national defense,
improve navigation, control destructive floods, and promote interstate commerce and the
general welfare, but no real estate shall be held except what is necessary in the opinion of
the Board to carry out plans and projects actually decided upon requiring the use of such
land: Provided, That any land purchased by the Authority and not necessary to carry out
plans and projects actually decided upon shall be sold by the Authority as agent of the
United States, after due advertisement, at public auction to the highest bidder, or at
private sale as provided in section 4(k) of this Act. [49 Stat. 1080, as amended by 118
Stat. 2966, 16 U.S.C. sec. 831dd]

[48 Stat. 58 (May 18, 1933), as amended by 49 Stat. 1075 (Aug. 31, 1935), 53 Stat. 1083 (July 26, 1939),
54 Stat. 611 (June 26, 1940), 55 Stat. 599 (July 18, 1941), 55 Stat. 775 (Nov. 21, 1941), 63 Stat. 107
(May 24, 1949), 66 Stat. 330 (July 3, 1952), 66 Stat. 591 (July 12, 1952), 68 Stat. 968 (Aug. 30, 1954),
73 Stat. 280, 285 (Aug. 6, 1959), 73 Stat. 338 (Aug. 14, 1959), 80 Stat. 346 (Aug. 12, 1966), 82 Stat. 885
(Sept. 28, 1968), 84 Stat. 915 (Oct. 14, 1970), 86 Stat. 206 (June 6, 1972), 88 Stat. 390 (July 25, 1974), 89
Stat. 750 (Nov. 28, 1975), 90 Stat. 376, 377, 380 (Apr. 21, 1976), 90 Stat. 1258 (Sept. 14, 1976), 93 Stat.
730 (Oct. 31, 1979), 96 Stat. 49 (Apr. 2, 1982), 97 Stat. 1332 (Dec. 1, 1983), 108 Stat. 2133 (Sept. 13,
1994); 118 Stat. 2963: 16 U.S.C. secs. 831-831dd]

12

Section 15 of the 1935 amendments to the TVA Act (49 Stat. 1081) contained similar language applicable to
the provisions enacted by those amendments.

30

THE FOLLOWING PROVISIONS OF LAW, ENACTED AS SECTION 604 OF
THE ENERGY AND WATER DEVELOPMENT APPROPRIATIONS ACT, 2005
(DIVISION C OF PUBLIC LAW 108-447), WERE NOT AMENDMENTS TO THE
TVA ACT AND ARE ONLY “TRANSITIONAL” PROVISIONS OF LAW WHICH
HAVE BEEN CODIFIED AS A NOTE UNDER 16 USC 831a.

SEC. 604. APPOINTMENTS; EFFECTIVE DATE; TRANSITION.
(a) APPOINTMENTS.-(1) IN GENERAL.--As soon as practicable after the date of enactment of this
Act, the President shall submit to the Senate nominations of six persons to serve as
members of the Board of Directors of the Tennessee Valley Authority in addition to the
members serving on the date of enactment of this Act.
(2) INITIAL TERMS.--Notwithstanding section 2(d) of the Tennessee Valley
Authority Act of 1933 (as amended by this title), in making the appointments under
paragraph (1), the President shall appoint-(A) two members for a term to expire on May 18, 2007;
(B) two members for a term to expire on May 18, 2009; and
(C) two members for a term to expire on May 18, 2011.
(b) EFFECTIVE DATE.--The amendments made by this title take effect on the later
of-(1) the date on which at least three persons nominated under subsection (a)
take office; or
(2) May 18, 2005.
(c) SELECTION OF CHAIRMAN.--The Board of Directors of the Tennessee
Valley Authority shall select one of the members to act as chairman of the Board not later
than 30 days after the effective date specified in subsection (b).
(d) CONFLICT-OF-INTEREST POLICY.--The Board of Directors of the
Tennessee Valley Authority shall adopt and submit to Congress a conflict-of-interest
policy, as required by section 2(g)(1)(E) of the Tennessee Valley Authority Act of 1933
(as amended by this title), as soon as practicable after the effective date specified in
subsection (b).
(e) TRANSITION.--A person who is serving as a member of the board of directors
of the Tennessee Valley Authority on the date of enactment of this Act-(1) shall continue to serve until the end of the current term of the member; but
(2) after the effective date specified in subsection (b), shall serve under the
terms of the Tennessee Valley Authority Act of 1933 (as amended by this title).

31

INDEX
References are to sections of the TVA Act or, where noted, to a particular page of this
pamphlet.
A
Accounts, books of, 8(b)
Act, right to amend or repeal reserved, 29
Agricultural development, as purpose of Act, 1
Agricultural use of power, 10
Alabama Power Company, Purchase of properties of, 15c
Allocation of cost and book value of plants, dams and other properties to
appropriate projects, 14
Annual reports, 9(a)
Amendments to Act, 29
Appointment of directors, 2
Appointment of officers and employees, 3
Appointments, no political test or qualifications, 6
Appropriations, authority for, 27
Assistance and advice from other departments, 5(i)
Attorneys to investigate past management, 17
Audit by Comptroller General, 9(b)
Audit, expense of, 9(b)
B
Board of directors, 2
Bonds, amount to be issued, 15c, 15d
Bonds, authority to issue, 15, 15a, 15c, 15d
Books, false entry in, penalty for, 21(b)
Books of accounts, maintenance of, 8(b)
Bridges, alterations, relocation, reconstruction, page 32
C
Chairman of the board, 2(a)
Civil actions for injury, etc., page 33
Civil Service laws not applicable, 3
Claims and litigation, settlement of, 9(b)
Clinch River, authority to build Cove Creek Dam across, 17
Commercial producers of fertilizers, 5(a)
Commissioner of Patents shall furnish information, 19
Compensation, worker’s (Federal Act) applicable to TVA employees, 3
Comptroller General, audit by, 9(b)
32

Condemnation proceedings, 4(h), 4(i), 18, 25
Congress, filing reports with, 9(a)
Conservation of natural resources, 22
Constitutionality of separate sections of Act, 30
Construction, list of works authorized, 4(j), 15d(a)
Construction of fertilizer plants, authority for, 5(f)
Construction of transmission lines, authority for, 4(j), 12
Construction of transmission lines to farms, etc., 10
Contracts for sale of revenue bonds, 15d(a)
Contracts for sale of surplus power to corporations, etc. (20 year), 10
Contracts for sale of surplus power to states, etc. (30 year), 12
Contracts for sale or lease of unused lands (50 year), 24
Contracts, general, 9(b)
Contracts, impairment of in case of repeal or amendment of Act, 29
Contracts, violation of by Government in case of national emergency for
purchase of property at Cove Creek, remedy for, 20
Contracts (30 year limit), payment in power, 24
Control and possession of completed works, 18
Cooperation with States and institutions in use of power, 10
Cooperation with States for general welfare, 22
Corporation, powers of, listed, 4
Cost of works, allocation of, 14
Counties and municipalities, sale of surplus power to, 11
Court, Claims Court, remedy for violation of contracts by Government in
case of war or national emergency, 20
Court, U. S. district, jurisdiction of in condemnation proceedings, 25
Cove Creek Dam, authority for construction, 17
Cove Creek Dam, possession and control of, 18
D
Damages for violation of contracts by Government, remedies through U. S. Claims
Court, 20
Dams, approval of TVA board necessary for construction on Tennessee River
System, 26a.
Dam No. 2, completion of, 16
Dams, power to construct, 4(j), 15
Date of incorporation, 1
Defense, national, as purpose of Act, 1
Defrauding the corporation, penalty for, 21(b)-(c)
Demonstrations, authority to make, 22
Directors, board of, 2
Directors, compensation and expense, 2(f)
Directors, oath of office, 8(c)
Directors, qualifications of, 2(b)
Directors, removal of, 4(f)
Directors, successors to, 2(d)
33

Directors, term of office, 2(d)
Discoveries or inventions by employees, 5(i)
Discrimination in rates for sale of power by purchasers from TVA
prohibited, 12
Domestic consumer, sale of power to, 11
Donation of products of fertilizer plants for education and
experiment, 5(e)
E
Economic development, future legislation, 23
Economic development, plans authorized for, 22
Education, use or sale of fertilizer products for, 5(e)
Educational experimentation, authority for, 22
Electric power, experiments for wider and better use of, 10
Electric power, future legislation to be recommended, 23
Electric power, sale of, 10, 12
Electric utilities, relocation of, 18
Eminent Domain, exercise of right, 4(h), 4(i), 18, 25
Employees, inventions by, 5(i), 19
Employees, not subject to political test or qualification, 6
Employees of other departments, use or transfer of, 5(i)
Employers Liability Act (Federal), applicable to TVA employees, 3
Enacting, clause, 1
Erosion, prevention of soil, 22, 23
Exchange of power with other producers, 12
Existing fertilizer plant, improvement of, 5(f)
Expenditures, 9(b)
Expense of audit, 9(b)
Expenses of directors, 2(f)
Experimental plants, 5(h)
Experimental surveys, authority for, 22
Experimentation, use or sale of products for, 5(e)
Experiments for wider and better use of electric power, 10
Explosives, sale of, to War or Navy Departments, 5(j)
F
False reports, entries, etc., penalty for, 21(b)-(c)
Farm organizations, use of fertilizers by, 5(b)-(c)
Farm, construction of transmission lines to, 10
Federal Power Commission, 15c
Fertilizer, allocation of cost to, 14
Fertilizer, donations of, for educational and experimental purposes, 5(e)
Fertilizer, patents in U. S. Patent Office to be accessible to
Corporation, 19
Fertilizer plants, construction of new ones and improvement of present
34

plant, 5(f)
Fertilizers, commercial producers of, 5(a)
Fertilizers, production of, at Muscle Shoals, 5(d)
Fertilizers, use of, by farms and farm organizations, 5(b)-(c)
Filing of annual statements and reports, 9(a)
Financial statements, annual filing, 9(a)
Flood control, allocation of cost to, 14
Flood control, as purpose of Act, 1, 9(a)
Flood, control, future legislation, 23
Fraud, penalty for, 21(b)-(c)
Future legislation, 23
G
Government assistance and advice from Government departments and
agents available, 5(i)
Government, property at Muscle Shoals entrusted to corporation, 7
H
Highways, relocation of, 18
I
Improvement of existing plants, 5(f)
Income from patent licenses, inventors’ compensation, 5(i)
Incorporation and incorporators, 1
Industrial development, as purpose of Act, 1
Industrial plants, contracts for relocation, 18
Industrial purposes, sale or lease of lands for only, 24
Industry, sale of power to secondary, 11
Infringement of patents, 19
Ingredients, fertilizer, authority to manufacture, 5(d)
Inventions by employees, 5(k), 19
Investigation of management of completed works, 17
Investment, repayment of, 15d(e)
Investment, return on, 15d(e)
J
Jurisdiction of Courts--condemnation proceedings, 25
L.
Labor, Secretary of, in fixing rate of wages, 3(b)
Laboratories and experimental plants, 5(h)
Land, acquisition of, 4(h)-(i)
35

Land planning, 18, 24, 25
Law enforcement, 4a
Laws repealed, 28
Lease (50 year limit) of nitrate plant No. 2 and Waco Quarry, 5(n)
Lease of power facilities, 12, 15d(a)
Lease of unused lands for industrial purposes, etc. (within one
year), 24
Legal residence of the corporation, 8(a)
Legislation, future to be recommended by President, 23
Loans to purchase electric properties, 15c
Location of the principal office of the Corporation, 8(a)
M
Management of completed works, investigation of, 17
Marginal lands, future legislation to be recommended by President
for proper use of, 23
Marginal lands, proper use of as purpose of Act, 1
Mississippi Power Company, purchase of properties of, 15c
Mississippi River Basins, flood control as purpose of Act, 1
Municipalities, sale of surplus power to, 11
N
Name of Corporation, 1
National defense, allocation of cost to, 14
National emergency, rights of Government in case of, 20
Navigation, allocation of cost to, 14
Navigation, improvement of as purpose of Act, 1, 9a.
Navigation projects, power to construct, 4(j)
Net proceeds from sales to be paid in U.S. Treasury, 26
Nitrate Plant No. 2, lease of (50 year limit), 5(n)
Nitrate Plant No. 2, to be maintained in stand-by condition if not used
for fixation of nitrogen, 5(g)
Nitrogen and products, production, authority for, 5(d)
O
Oath of office by the directors, 8(c)
Offenses, fines and punishment, 21
Office of the Corporation, location of, 8(a)
P
Patent office records, access to, 19
Patents granted to employees of TVA, 5(i)
Patents, remedy of owners for infringement by TVA, 19
36

Penal statutes, application to TVA, 21(a)
Penalty for fraud or false entry, 21(b)-(c)
Percentages of proceeds from sale of power payable to States and local
governments, 13
Policy as to distribution of surplus power, 11
Political tests for employees prohibited, 6
Population, readjustment of, 4(l)
Possession of completed works, 18
Power allotment to War Department, 5(k)
Power contracts (30 year limit) exchange for property purchased by
President, 24
Power development, allocation of cost to, 14
Power, exchange of with other producers, 12
Power houses and structures authorized to construct, 4(j)
Power, proceeds from sale of, disposition, 26
Power rates on resale to be fixed by board, 12
Power rates, wholesale, establishment of, 15d(f)
Power resold by contractor, rates for, 12
Power, sale to farm cooperatives and villages, 10
Power, sales to States, municipalities, etc., 12, 12a
Power service area, limitation of, 15d(a)
Power, surplus, sale of, 10
Power, use of for domestic and rural consumers, primary policy, 11
Power, use of for industry shall be only secondary purpose, 11
Powers of the Corporation listed, 4
Powers vested in board of directors, 2(g), 5
Preference to injured employees, 3
President, authorized to transfer property to Corporation, 7(b)
President, filing annual statements with, 9(a)
President, shall discharge violators of section 6, 6
President shall recommend future legislation, 23
Prices for resale of surplus power fixed by the board, 12
Principal office of the corporation, location of, 8(a)
Production of nitrogen and products thereof, 5(d)
Profits over expense payable into Treasury, 26
Projects, existing, relocation of, 18
Property, authority to President to acquire in name of United States
and pay for by delivery of power, 24
Property, exchange of power for, 24
Property, Muscle Shoals entrusted to Corporation, 7(a)-(b)
Property, power to acquire and sell, 4(f), 4(k), 31
Public utilities, relocation of, 18
Purchases, 9(b)
Purposes of the Act, 1
Q

37

Qualifications of directors, 2(b)
Quarry, Waco, lease of (50 year limit), 5(n)
R
Railroads, relocation of, 18
Rates for resale of power, discrimination prohibited, 12
Rates for resale of power fixed by the board, 12
Rates, wholesale power, 15d(f)
Readjustment of population, 4(l)
Real estate, acquisition of, 4(h), (i)
Rebates, power sale contract, voidable by board if discriminatory
rebates made, 12
Receipts from sales, States’ portions, 13
Reforestation, 22, 23
Regional planning, physical development of area, 22
Relocation of existing utilities, 18
Repayment of power investment, 15d(e)
Repeal of Act, right reserved, 29
Repeal of conflicting acts, 28
Reports, annual and financial statements, 9(a)
Reports, financial report on funds derived from bonds, 15c
Reservoirs, power to construct, 4(j)
Retail of power, rates for, 12
Return on power investment, 15d(e)
Revenue bonds, 15d
Roads and highways, relocation of, 18
Rural consumers, sale of power to, 11
S
Salaries, fixing of, 2(i)
Sale of explosives to War or Navy department, 5(j)
Sale of power over other than Government lines, 12
Sale of power to corporations and individuals (20 year limit), 10
Sale of power to States, municipalities, etc. (30 year limit), 12
Sale of power to War Department, 5(k)
Sale of products for experimentation and education, 5(e)
Sale of property, 4(k), 15d(g), 31
Sale or lease of unused lands, etc. (within one year), 24
Sales, net proceeds from disposition of, 26
Schedule of prices for retail distribution, 12
Secretary of Labor, and rate of wages, 3(b)
Separability clause, 30
Service area, limitation of, 15d(a)
Social development of area, survey and plans, 22, 23
Soil, prevention of erosion of, 22, 23
38

Southern Tennessee Power Company, purchase of properties of, 15c
State governments, cooperation with for use of power, 10
Statements, annual filing of, 9(a)
States and municipalities to have priority in sale of power, 12a
States and other public organizations, sale of power to, 11
States, cooperation with for general welfare, 22
States, percentage of gross receipts, 13
Statutes, penal application to TVA Act, 21(a)
Steam plant at Nitrate Plant No. 2, completion of, 16
Surplus power, policy as to distribution, 11
Surplus power, sale of (20 year limit), 10
Surplus power, sale of (30 year limit), 12
Surveys for general betterment of Tennessee Basin, 22
T
Tax payments, method of apportionment, 13
Tax payments, report on operation, 13
Tax replacement, 13, 15d(g)
Tennessee Electric Power Company, purchase of properties of, 15c(1)
Term of office of directors, 2(d)
Title of Act, 1
Transfer of employees from other Departments, 5(i)
Transmission line from Muscle Shoals, authority for, 17
Transmission lines, authority for construction, 4(j), 12, 15c(4)
Transmission lines for farms and villages, 10
Transmission lines, lease of, 12
Transmission lines, possession and control of, 18
Transmission lines, purchase of, 12
Treasurer and assistants, 4(f)
Treasury of U. S., approval of bonds, 15d(c)
Treasury of U. S., guarantee of bonds, 15c
Treasury of U. S., purchase of bonds, 15d(c)
Treasury of U. S. to receive net proceeds from sales of power, 26
U
Unfinished plants, completion authorized, 16
U. S. Treasury, to receive net proceeds from sales of power, 26
Utilities, public, relocation of, 18
V
Vacancies on the board, 2(d)-(e)
Vacant lands, sale or lease for industrial purposes, 24
Validity of Act, sections separable, 30
Valuation of Government property for allocation to purposes of Act, 14
39

Violation of contracts by Government, remedy for, 20
Volunteers, acceptance of services, page 31
W
Waco Quarry, lease of (50 year limit), 5(n)
Wages, rates of, etc., 3(b)
War, rights in case of, 20
Welfare plans, authority for, 22
Worker’s Compensation Act (Federal), applicability to TVA employees, 3
000000916

40