ference in this regard. 



Recognition of Montana's preference in the sale and distribution of federal 

 energy attributable to projects in the state was not intended to be limited to acts 

 and determinations at the time the Hungry Horse Project was constructed. The Con- 

 gress passed and the President signed legislation in 1963 to guarantee electric 

 consumers in the Pacific Northwest first call on electric energy generated at fed- 

 eral hydroelectric plants in that region. Thus, legislative history supports the 

 application of the state's geographical preference with respect to the second ma- 

 jor federal hydroelectric project in western Montana--Libby Dam--and the additional 

 energy that would be produced by the proposed units, should they become a reality, 

 would surely be similarly intended. 



Authorization 



Libby Dam was constructed with provisions for eight generators. With the addi- 

 tion of proposed units five through eight, the plant would have an increased capab- 

 ility of supplying peaking power to Montana and the northwestern United States. How- 

 ever, a reregulating dam would be required. 



According to the Corps, Congressional authority for the additional units and re- 

 regulating facility was granted at the same time Libby Dam itself was authorized--by 

 the Flood Control Act of 1950. In the act, a single reference was made to a rereg- 

 ulating facility. It reads "if it becomes necessary to reduce this fluctuation, re- 

 regulation will be considered when the need arises" (House Document 531, Volume II, 

 page 464. 81st Congress, 2nd Session). 



A suit was filed by the Libby Rod and Gun Club and others challenging, among 

 other aspects of the proposed project, that statement as being Congressional authori- 

 zation. 



On September 8, Judge W. D. Murray, Federal District Court, Butte Division, 

 granted a preliminary injunction on the grounds that (a) the project is not, in 

 his opinion, authorized and (b) the Corps failed to adequately consider alternatives 

 to the project. Thus the decision has forced a halt on further construction and a 

 trial date will be set. 



12 



