The Act appropriated A£30 million as the estimated cost of construction of the dam.
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It was originally established in 1941 under the Bureau of Ordnance as the Naval Ammunition Depot for production, testing, and storage of ordnance under the first supplemental Defense Appropriation Act.
Determined to have the Tellico Dam completed, Senator Baker and Representative John Duncan, Sr. rejected the economic analysis and attached a rider into the Energy and Water Development Appropriation Act in July 1979 directing TVA to complete the construction of the Tellico Dam.