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<br />Executive Summary
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<br />The origins of Ihe pn.:fcrclll:c dall.'-lL' L'~11l hl.' Irill:ed hilL'l.. In IX?7, Whl'lI
<br />the C(Jn~rl'~'i pOl.""~l'J lilt.. fir"il h.'l.h:ral slalllll' ,....hil,.:h pn)\'idcd 111011 SUT'
<br />plus redamalioll wala Shlllllu ne hdu fllr Pllbhl' lise, Over Ihe ne," fiflY
<br />years, Conglcs:, providcJ i'tH various f()rl1l~ of I "JHl'fcn..'IlI.:C" ill (he Jis~
<br />Irihlllioll of pllbliL'lY-~)Wlh:d wah:r n_'~tlllr(l'S. IIll)sl IHHahly Ihe prefer-
<br />CJlC~ III stall'S ~lIld 1IItIlIil.'ipalilil.',) ill I hI.' :Jwi.la! of licenses for hydrock'l.'.
<br />,ric plant") whidl is found in Ihe h.:dl...'l"al PU\H~r ACI.
<br />ThL' firsl prl'l"l.'rclh':c \n 1I1\1I1h.:ip~lIiliL's in IhL' ih.'lu;tI ...;tk of ekl.:lliL"
<br />power \\'a~ adopted in Ihe !lOUIUl'! (-,III}'tHl Prnjl'CI Al'l of I'):!H.
<br />Spurrl:'d hy Ihe ue...irc (I) hrlllg L'l'Onollli<.: dl'\c:lOPIllL'1l1 III illlpll\'l~II~hL'd
<br />art'aS dllrillg Ihe IkpIL,..,..,IOII alld I hI.' puhlic l'ulragl..' allh~ ahu'lih'IHal'-
<br />lices 01 1IIililit..'.'l and 1Ililily holdillg I...'llIIIP;!lIil..':-' ill Ihe Il)20\., ('Ollglt:~:-.
<br />passeulk T"IIII"""" Valley 1\lIlhmily 1\c1 of 1<J33, which "''''\)l\Cd Ihe
<br />pr~rCrell(l' CIaLl~c 10 /loll.profil c(Jt)perali\'es, ~lI1d ;tllllhHI/~J IhL' CtHl-
<br />Slructiull of [:elk-ral Ir,lIhllliS:"Iinll lillL's frolll Federal L'kclric projL'l'h.
<br />thus reducing rdiullcL' un priva"-' ulililie~"
<br />The Congress cOlllinllt'J 10 pass It:gislalillll (olltaining prekll..'lh.:L'
<br />dau~t'.l) thTllUf!.h Ih(' sixlies, illllHlll~h Ihl' ()Ppll'lllioll of Prl....llklll Ei.,L'Il-
<br />howcr tn pn:fcrcl\(l' PUWl.:f r~~Hlh.:d \1\ IHHnC"rtl\l~ cHurl.... by nil,' L '\l'CU-
<br />livc Ilranch during tll,,: f()50';., 10 \\"l'il~t.'lIlhl' prl'kr~llcc'\. Ihl\\'cn:r, lhe
<br />Congress rc:.'maineJ firmly L'Ollllllilled 10 Ihe (Olh':l..'jll ill' prekIL'IIt."C.:
<br />po\\'er, anJ Culldlh.:lcu sl'\'i.:ral illve;.,llgalinns illln Ihl' errOrl..; or [hl'
<br />EXCl.:lIlivc Brandl In IIIHk'rlllilll' Ihe policy" Prl'...idl.'llh t\.1.'lllll'dy ,lIld
<br />Johnson reversed Li...~nhIH\'l'r's polil'il'..;, Il1u;., t.'uslIrillg IlIal J11L'h..'rL'II1..."l'
<br />pl)Wer (U;-,IlHIl~rs wllulJ ..:unlillue Il) rl..'cciv~ l'\(e~... h:Jcr~t1ly t!l'IlI.'1 dlL'd
<br />power 011 a priorily h;l~i.".
<br />The bailie over pTckrelll'l:' PO\\'l'f has declineu ill illtell~il.\' ill 11Il' 1;1..,1
<br />fiflCcn years, U~ rllral del'lIk l'lHlpCralivl's, IJlllllicipall~ OWllcd l'Il'clric
<br />!,y~lcms all<.l iIlVI';o.,({H-ln....llcd 1Ilililie~ w(lr~l'd lIlore du..,d~' I llt:l'l 111..'1 ill
<br />meeting prohlt:ms COIllI11111l to :.tlllllllilit.'s \\'ilholll Icg,lId 10 1111..' 1"(11"111 of
<br />ownl.'Tship. HO\\'l'\'cr, i.l:-. lhe L'l);-,Illf L'll'l':lri(al power L'IHUinlLC:-' (11 dimh
<br />Hnd powl'r .'lllpplie~ hl'gilllu liglllt.'1l ill ....01111..' :lll';.IS of I Ill' (llllllll}', Ill'\\'
<br />attacks on the prcfl'rclh:e c1allse havc {k'l"llrred, 1II~Ij..,il\g il I"l'a.,Ollahlc 10
<br />eX<Jmillc anew (he valitlily or Ihe prckrl'lh:e clause"
<br />The prefercllce di.lll....c i.\, 1110.,1 ~illlply' 01 1\'((lglliliIHI :11"1 Pllhlll.:ly
<br />owned reSOllh'CS helong 10 Ihc l1ali\HI'S Pl'tlpk, i.llld .....lhHlld I'll' di:o..-
<br />tribuled uireelly 10 the people where il is possihle III UO ,so, SlIrplll,s elec-
<br />tric power generuleu al l'ederally-owlleu fa,'ililies ,'olllers eOllsiucruhle
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