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made pursuant to the Project Act, and in the event of such termination the operation and maintenance, and the making of replacements, however necessitated, of the Boulder Power Plant by the United States directly or through such agent or agents as the Secretary may designate, is hereby authorized. The powers, duties, and rights of such agent or agents shall be provided by contract, which may include provision that questions relating to the interpretation or performance thereof may be determinated, to the extent provided therein, by arbitration or court proceedings. The Secretary in consideration of such termination of such existing lease is authorized to agree (a) that the lessees therein named shall be designated as the agents of the United States for the operation of said power plant; (b) that (except by mutual consent or in accordance with such provisions for termination for default as may be specified therein) such agency contract shall not be revocable or terminable; and (c) that suits or proceedings to restrain the termination of any such agency contract, otherwise than as therein provided, or for other appropriate equitable relief or remedies, may be maintained against the Secretary. Suits or other court proceedings pursuant to the foregoing provisions may be maintained in, and jurisdiction to hear and determine such suits or proceedings and to grant such relief or remedies is hereby conferred upon, the District Court of the United States for the District of Columbia, with the like right of appeal or review as in other like suits or proceedings in said court. The Secretary is hereby authorized to act for the United States in such arbitration proceedings.

SEC. 10. This Act shall be effective immediately for the purpose of the promulgation of charges, or the basis of computation thereof, and the execution of contracts authorized by the terms of this Act, but neither such charges, nor the basis of computation thereof, nor any such contract, shall be effective unless and until this Act shall be effective for all purposes. This Act shall take effect for all purposes when, but not before, the Secretary shall have found that provision has been made for the termination of the existing lease of the Boulder Power Plant and for the operation thereof as authorized by section 9 hereof, and that allottees obligated under contracts in force on the date of enactment of this Act to pay for at least 90 per centum of the firm energy shall have entered into contracts (1) consenting to such operation, and (2) containing such other provisions as the Secretary may deem necessary or proper for carrying out the purposes of this Act. For purposes of this section such 90 per centum shall be computed as of the end of the absorption periods provided for in regulations heretofore promulgated by the Secretary and in effect at the time of the enactment of this Act.

If contracts in accordance with the requirements of this section shall not have been entered into prior to June 1, 1941, this Act shall cease to be operative and shall be of no further force or effect.

SEC. 11. Any contractor for energy from the project failing or refusing to execute a contract modifying its existing contract to conform to this Act shall continue to pay the rates and charges provided for in its existing contract, subject to such periodic readjustments as are therein provided, in all respects as if this Act had not been passed, and so far as necessary to support such existing contract all of the provisions of the Project Act shall remain in effect, anything in this Act inconsistent therewith notwithstanding.

SEC. 12. The following terms wherever used in this Act shall have the following respective meanings :

“Project Act” shall mean the Boulder Canyon Project Act;

“Project" shall mean the works authorized by the Project Act to be constructed and owned by the United States, exclusive of the main canal and appurtenances mentioned therein, now known as the All-American Canal;

“Secretary” shall mean the Secretary of the Interior of the United States;

"Firm energy" and "allottees” shall have the meaning assigned to such terms in regulations heretofore promulgated by the Secretary and in effect at the time of the enactment of this Act;

"Replacements" shall mean such replacements as may be necessary to keep the project in good operating condition during the period from June 1, 1937, to May 31, 1987, inclusive, but shall not include (except where used in con junction with the word “emergency” or the words "however necessitated") replacements made necessary by any act of God, or of the public enemy, or by any major catastrophe; and

"Year of operation” shull mean the period from and including June 1 of any calendar year to and including May 31 of the following calendar year.

SEC. 13. The Secretary of the Interior shall, in January of each year, submit to the Congress a financial statement and a complete report of operations under this Act during the preceding year of operation as herein defined.

SEC. 14. Nothing herein shall be construed as interfering with such rights as the States now have either to the waters within their borders or to adopt such policies and enact such laws as they may deem necessary with respect to the appropriation, control, and use of waters within their borders, except as modified by the Colorado River compact or other interstate agreement. Neither the promulgation of charges, or the basis of charges, nor anything contained in this Act, or done thereunder, shall in anywise affect, limit, or prejudice any right of any State in or to the waters of the Colorado River system under the Colorado River compact. Sections 13 (b), 13 (c), and 13 (d) of the Project Act and all other provisions of said Project Act not inconsistent with the terms of this Act shall remain in full force and effect.

SEC. 15. All laborers and mechanics employed in the construction, alteration, maintenance, operation or repairs of any part of the project or immediately and directly connected therewith, shall be paid not less than the prevailing rate of wages for work of a similar nature prevailing in the locality in which they are employed. This provision shall apply where such work as is described in this section is done directly by the government or by governmental agency, or by any lessee or operating agency. 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.

SEO. (15]16. This Act may be cited as “Boulder Canyon Project Adjustment Act.

Senator McCARRAN. Now there has just come to the hands of the members of the committee here the report of the House committee on this bill, H. R. 9877. It is the House committee report. It will not be necessary, will it, to insert this in the record ?

Senator O'MAHONEY. I would think not.
Senator McCARRAN. No.

Senator O'MAHONEY, Mr. Chairman, I understand that the reporter was uncertain as to what my request was for inclusion in the record out of Mr. Debler's report. My request was only that the chart entitled "Colorado River Basin Investigations Under Section 15 of Boulder Canyon Project Act" be printed in the record. That is the table prepared by Mr. Debler to show the proposed expenditure of this development fund.

Senator MoCARRAN. Have you anything more!

Mr. KAMERMAN. I have just one other point that I would like to call to the attention of the committee. There is a change that appears in the language in S. 4039, a change from the language as it appeared in H. R. 9093, which we would like to see changed back.

Senator McCARRAN. Are you now referring to H. R. 9877?

Mr. KAMERMAN. No; I am referring to the bill pending before the committee.

Senator McCARRAN. I see.

Mr. KAMERMAN. This is a relatively minor point, but, nevertheless, one that we would like to see clarified. This provisions is an authorization for appropriations in order to take care of future replacements that may become necessary at the project. The amount authorized to be appropriated is limited to the amounts not exceeding in the aggregate moneys and I am quoting from page 9, line 13 “moneys repaid to the Treasury pursuant to sec. 2 (b) hereof."

Now in H. R. 9093 the language which corresponded to that was “not exceeding in the aggregate the amount theretofore paid from the Colorado River Dam fund into the Treasury.”

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Now the reason we would like to have that revert to that language

Senator O’MAHONEY. Will you read that again, please?

Mr. KAMERMAN (reading): the amount theretofore paid from the Colorado River Dam fund into the Treasury.

If and when this bill becomes effective law, payments in the amount of $3,300,000 will have accumulated. Those are the payments to the States of Arizona and Nevada, payments for the development fund, payments for 3 years for the above purposes. That means that probably for a year, anyway, the revenues that will accrue will have to go to take up these payments, and it means that in that period of a year nothing will be available for payment to the Treasury. So that, if in those early years replacements do become necessary, this authorization of an appropriation would be a nullity, because there would be nothing paid under this section 2 (b). For that reason we would like to have the language revert to the language in H. R. 9093, which I read, in order to have this authorization apply to any moneys heretofore paid, which would permit taking into account moneys already paid into the Treasury from the Colorado River Dam fund during these past few years.

Senator O’MAHONEY. Mr. Chairman, I find on examining the House bill now on the House Calendar that the language is exactly the same as that which the witness wants to change in the Senate bill, and, therefore, I ask whether you know why the House did not make the change you suggest, or did you make this suggestion to the House?

Mr. KAMERMAN. We did not, Senator.
Senator OʻMAHONEY. You are making it now for the first time?

Mr. KAMERMAN. We are making it now for the first time. We noticed it really when we saw the language in the House bill which varies in this minor respect from the language in this bill as reported, and in the bill now before us.

Senator McCARRAN. Before the Senate committee? Mr. KAMERMAN. Before this committee. Senator O'MAHONEY. I think that is clearly an improvement. Under the bill as it stands, the Secretary of the Treasury may readvance only the amounts that have been repaid. It is possible that no funds may be repaid. Under the amendment which you suggest, the Secretary of the Treasury, under the circumstances outlined, may

, readvance the total amounts that have been paid into the Colorado River fund theretofore.

Mr. KAMERMAN. No. It is the total amount that has been paid from the Colorado River Dam fund into the Treasury.

Senator OʻMAHONEY. I beg your pardon. That is what I meant; yes.

Mr. KAMERMAN. Yes. It would provide this margin of several million dollars which have been paid into the Treasury on account of interest during the last few years.

Senator McCARRAN. It would, in reality, take nothing from the Treasury?

Mr. KAMERMAN. No; nothing at all. The money has gone in there already.

Senator JOHNSON. I see no objection to that.

Mr. KAMERMAN. I have just received a copy of the outline of agency contract between the United states of America and the city of Los Angeles, and its department of water and power, and Southern California Edison Co., Ltd., which, if you wish, I will submit for the record.

Senator McCARRAN. It may be inserted in the record. (The contract referred to is as follows:)




1. Preamble.—Usual preamble stating date and parties.
2. Recitals.-(a) Passage of Boulder Canyon Project Adjustment Act.

(6) Desire of United States to rovide for assui tion of operation by it through agents as authorized thereby.

(c) Other appropriate recitals.


3. Termination of Lease.—Upon the taking effect of Agency Contract, all leasehold rights of the lessees, under the Contract for Lease of Power Privilege, shall cease.

NOTE.—The City and the Edison Company also have rights in their respective capacities as allottees. In the present contract documents such rights are interwoven and not separately stated. It is assumed that, on the drafting of the Supplemental Contracts and Agency Contract, the rights of the City and the Edison Company as power allottees (with changes required by the Adjustment Act) shall be preserved.

It is also assumed that the Boulder Canyon Project Adjustment Act as passed will give adequate assurance that the Agency Contract cannot be terminated except for default of the agents.

It is also recognized that upon the actual drafting of the Agency Contract there may be provisions in the existing contract, of a formal nature, which are appropriate under the agency plan and which it will be mutually agreed should be carried into the Agency Contract for the protection of both the Government and the Operating Agents.

4. Designation of Operating Agents and Term of Agency.-(a) The City and the Edison Company, severally, designated as Operating Agents for their respective portions of the plant.

(6) Acceptance by each of appointment and duties.

(c) Agency to commence with first day of calendar month following that in which Adjustment Act becomes fully effective, and to continue until May 31, 1987, subject to termination for breach as hereinafter provided.

5. Specification of Properties to be Operated Directly by United States and Properties to be Operated by the Operating Agents.-(a) United States (directly) to operate the Boulder Dam and such incidental works as are specified in the contract.

(6) The Operating Agents (severally as to their respective portions) to operate the power plant and such incidental works as are specified in the contract.

(c) As works in course of construction or future additions to plant, the responsibility of the Operating Agents to begin when the same are ready for use or operation.

(a) Facilities common to, or necessary for use in connection with, both portions of plant to be operated by the Operating Agent agreed upon by both such agents or designated by the Director, but to be available to the other Operating Agent and to the United States, subject to proper adjustments of costs.

(e) Any uncertainty as to classification of any item, either as between U. S. and Operating Agents or as between Operating Agents, to be determined by Director.

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(f) If requested by either Operating Agent, the U. S. will do at the machine shop, so far as facilities permit, machine work required in performance of Agency Contract.

6. Duties of Operating Agents.—(a) Each Operating Agent to have duty to operate and maintain its portion of plant, and except as herein provided, to make replacements of parts thereof, without interference from other Operating Agent, but subject to supervision of Director, as herein provided.

(6) Definition of maintenance. (c) Definition of replacements.

(d) Operating Agents to furnish all necessary services and labor (except as per Item 6-f hereof), including engineering, accounting, and other overhead services.

(e) Operating Agents to furnish all supplies, materials, machinery, and equipment necessary for operation, maintenance, or replacements; except U. S. to purchase, on reasonable notice, (1) if any single purchase estimated to exceeil $10,000,000; (2) if Operating Agents cannot make any purchase because of any law; and (3) if it is agreed with Director that purchase by Operating Agents is infeasible or not in interest of economy.

NOTE.—This Item 6-e is tentative, as it is recognized by the Solicitor's office, Bureau of Reclamation, and the representatives of the power contractors that further study of applicable laws, both Federal and local, may require a different set-up, and also that the considerations noted under Item 12 may affect the form of this provision. It is the intention that, under this item, there shall be an adequate provision as to the responsibility for furnishing supplies, materials, machinery, and equipment, such as, on further study, may be found to be workable.

(f) Machinery, whether furnished by Operating Agents or U. S., to be installed by Operating Agents, except that, by agreement, machinery or equipment purchased by the U. S. may be installed by contractor furnishing the same.

(g) Except in emergency, no substantial change to be made withont written consent of Director, and Secretary's determination as to what is substantial, to be final.

(h) If, in opinion of Secretary, any machinery o" other property shall be in defective, dangerous, or improper condition, then, on notice, Operating Agent shall correct condition by adequate repairs or replacements, and if it neglects so to do, U. S. may make repairs or replacements.

(i) Operating Agents to keep informed, so far as practicable, of various contractors' requirements for electrical energy, and to notify Director so that additional machinery and equipment may be available when needed. Operating Agents to cooperate in preparation of designs for additional machinery and equipment, and all contractors affected to have opportunity to be heard respecting design, capacity, and cost before contracts let.

(j) Each Operating Agent to have right to operate in such manner as to obtain benefit of reasonable integrated operation of portion of plant by which it is served, and its other sources of supply, provided other contractors are not detrimentally affected.

(k) Facilities operated by U. S. necessary or convenient for the performance of the duties of the Operating Agents to be available to them.

(1) If Secretary notifies an Operating Agent that any employee stationed at the plant is unsatisfactory, stating the cause of dissatisfaction, the Operating Agent shall promptly remedy cause of dissatisfaction by removal of employee, or otherwise.

7. Powers and Duties of Director:-(a) The Director appointed by the said Secretary shall have the power and duty to exercise general supervision over operation and maintenance and the making of replacements by the Operating Agents in order to secure the safe, economic, and efficient use of generating machinery and equipment and economic and efficient use of water at this Project and as between this Project and any other project on the Colorado River under the jurisdiction of the Department of the Interior at which power is developed, consistent with the reasonable integrated operation provided for in Item 6-3 hereof and with the provisions of other contracts relating to this project heretofore or hereafter entered into by the United States.

(b) Director to have power to enforce rules and regulations duly promulgated by Secretary.

8. Record of Electrical Energy Generated.—Provision for records and reports of generation and delivery of energy.

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