16 U.S.C. § 800 — Issuance of preliminary permits or licenses

(a) Preference In issuing preliminary permits hereunder or original licenses where no preliminary permit has been issued, the Commission must give preference to applications therefor by States, Indian tribes, and municipalities, provided the plans for the same are treated by the Commission equally well adapted, or must within a reasonable time to be fixed by the Commission be made equally well adapted, to conserve and use in the public interest the water resources of the region; and as between other applicants, the Commission may give preference to the applicant the plans of which it finds and determines are best adapted to develop, conserve, and use in the public interest the water resources of the region, if it be satisfied as to the ability of the applicant to carry out such plans. (b) Development of water resources by United States; reports Whenever, in the judgment of the Commission, the development of any water resources for public purposes should be undertaken by the United States itself, the Commission must not approve any application for any project affecting such development, but must cause to be made such examinations, surveys, reports, plans, and estimates of the cost of the proposed development as it may find necessary, and must submit its findings to Congress with such recommendations as it may find appropriate about such development. (c) Assumption of project by United States after expiration of license Whenever, after notice and opportunity for hearing, the Commission determines that the United States should exercise its right upon or after the expiration of any license to take over any project or projects for public purposes, the Commission must not issue a new license to the original licensee or to a new licensee but must submit its recommendation to Congress together with such information as it may consider appropriate.