109 HR 4418 IH: Twenty-First Century Water Works Act
U.S. House of Representatives
2005-11-18
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the Rural Water Supply Act of 2005
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Reclamation Rural Water Supply Act of 2005
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Rural water supply program.
Sec. 104. Rural water programs assessment.
Sec. 105. Appraisal investigations.
Sec. 106. Feasibility studies.
Sec. 107. Miscellaneous.
Sec. 108. Authorization of appropriations.
Title II—Twenty-First Century Water Works Act
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Project eligibility.
Sec. 204. Loan guarantees.
Sec. 205. Operations, maintenance, and replacement costs.
Sec. 206. Title to newly constructed facilities.
Sec. 207. Water rights.
Sec. 208. Interagency coordination and cooperation.
Sec. 209. Authorization of appropriations.
<enum>I</enum><header>Reclamation Rural Water Supply Act of 2005</header>
<section commented="no" display-inline="no-display-inline" id="H9EE0C344543243F8AFE773F99BF7BD2" section-type="subsequent-section"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Reclamation Rural Water Supply Act of 2005</short-title></quote>.</text></section>
<section commented="no" display-inline="no-display-inline" id="H886BB81AF7EC4E2BB1D1218473C16703" section-type="subsequent-section"><enum>102.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA5A2BE894D9141848BAE15276683D600"><enum>(1)</enum><header>Construction</header><text>The term <term>construction</term> means the installation of new infrastructure and the upgrading of existing facilities in locations in which the infrastructure or facilities are associated with the new infrastructure of a rural water project recommended by the Secretary pursuant to this title.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HA0C63E003D484D7500A9F3B1DAA8DBE7"><enum>(2)</enum><header>Federal reclamation law</header><text display-inline="yes-display-inline">The term <term>Federal reclamation law</term> means the Act of June 17, 1902 (32 Stat. 388, chapter 1093), and Acts supplemental to and amendatory of that Act (<external-xref legal-doc="usc" parsable-cite="usc/43/371">43 U.S.C. 371 et seq.</external-xref>).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H4AC5B8FD83E44B7A843D4C9B6026B02E"><enum>(3)</enum><header>Indian</header><text display-inline="yes-display-inline">The term <term>Indian</term> means an individual who is a member of an Indian tribe.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF1BF07DFC7D746FF9B03DEEF7C9C99DA"><enum>(4)</enum><header>Indian Tribe</header><text display-inline="yes-display-inline">The term <term>Indian tribe</term> has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/450b">25 U.S.C. 450b</external-xref>).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HE0579C90ED104B37B72500646EE6794B"><enum>(5)</enum><header>Non-Federal project entity</header><text display-inline="yes-display-inline">The term <term>non-Federal project entity</term> means a State, regional, or local authority, Indian tribe or tribal organization, or other qualifying entity, such as a water conservation district, water conservancy district, or rural water district or association.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H3B1F651C649E4D9B87DE4CE9BB69EC"><enum>(6)</enum><header>Operations, maintenance, and replacement costs</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6F28B1411C1F431AAF257DD9449EF13B"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>operations, maintenance, and replacement costs</term> means all costs for the operation of a rural water supply project that are necessary for the safe, efficient, and continued functioning of the project to produce the benefits described in a feasibility study.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H82C148561EEA4FBEAB6BAB4E89EFC08C"><enum>(B)</enum><header>Inclusions</header><text display-inline="yes-display-inline">The term <term>operations, maintenance, and replacement costs</term> includes—</text>
<clause commented="no" display-inline="no-display-inline" id="HC4890B8D70B44704A596A2575314B1CC"><enum>(i)</enum><text display-inline="yes-display-inline">repairs of a routine nature that maintain a rural water supply project in a well kept condition;</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HBF476441970C4BB59C2C706FB2E94F4C"><enum>(ii)</enum><text display-inline="yes-display-inline">replacement of worn-out project elements; and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HF608837258324EF5B42EF3BB68B50120"><enum>(iii)</enum><text display-inline="yes-display-inline">rehabilitation activities necessary to bring a deteriorated project back to the original condition of the project.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE650BE007D40413BA429002F3CC5A871"><enum>(C)</enum><header>Exclusion</header><text display-inline="yes-display-inline">The term <quote>operations, maintenance, and replacement costs</quote> does not include construction costs.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H421AAD0CBE404F26B357006C3C9CF22C"><enum>(7)</enum><header>Program</header><text display-inline="yes-display-inline">The term <term>Program</term> means the rural water supply program established under section 103.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HFF5281F2E74F4183B58952D83FDFF236"><enum>(8)</enum><header>Reclamation states</header><text display-inline="yes-display-inline">The term <term>Reclamation States</term> means the States and areas referred to in the first section of the Act of June 17, 1902 (<external-xref legal-doc="usc" parsable-cite="usc/43/391">43 U.S.C. 391</external-xref>).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H2BC4F962CEE147D3AC24DECAA68E7E00"><enum>(9)</enum><header>Rural water supply project</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFE90584FC23540448828863CD232E065"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>rural water supply project</term> means a project that is designed to serve a community or group of communities, each of which has a population of not more than 50,000 inhabitants, which may include Indian tribes and tribal organizations, dispersed homesites, or rural areas with domestic, industrial, municipal, and residential water.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H493CFB4F96C44823B8BED003FEA3CF76"><enum>(B)</enum><header>Inclusion</header><text display-inline="yes-display-inline">The term <term>rural water supply project</term> includes—</text>
<clause commented="no" display-inline="no-display-inline" id="H0D2A0A9FF998435FAFA7D4DA340F918"><enum>(i)</enum><text display-inline="yes-display-inline">incidental noncommercial livestock watering and noncommercial irrigation of vegetation and small gardens of less than 1 acre; and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H4516FAE145394D55BE6DCD06E51226A8"><enum>(ii)</enum><text display-inline="yes-display-inline">a project to improve rural water infrastructure, including—</text>
<subclause commented="no" display-inline="no-display-inline" id="H5D2708119DAD4BFDB97C4CB6CF578B3B"><enum>(I)</enum><text display-inline="yes-display-inline">pumps, pipes, wells, and other diversions;</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HDA91A46A9EF74E5EBA393C47BAC9632D"><enum>(II)</enum><text display-inline="yes-display-inline">storage tanks and small impoundments;</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H07CCFF6A2C9548C082AD00C866C27575"><enum>(III)</enum><text display-inline="yes-display-inline">water treatment facilities for potable water supplies, including desalination facilities;</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H0465145DF36A44CC83EC00BFE4800286"><enum>(IV)</enum><text display-inline="yes-display-inline">equipment and management tools for water conservation, groundwater recovery, and water recycling; and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HEE62561E25814BFBA99B5FFA4B97A4D"><enum>(V)</enum><text display-inline="yes-display-inline">appurtenances.</text></subclause></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H86BE5B7B56BE4265B65DB1B5CEE483A8"><enum>(C)</enum><header>Exclusion</header><text display-inline="yes-display-inline">The term <term>rural water supply project</term> does not include—</text>
<clause commented="no" display-inline="no-display-inline" id="H682415A889924F7BB22984DF10C1FE26"><enum>(i)</enum><text display-inline="yes-display-inline">commercial irrigation; or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H1BB8CDD85A4D440A9176AB4654002688"><enum>(ii)</enum><text display-inline="yes-display-inline">major impoundment structures.</text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD0E50E52C5AF4AD8B8E4017131593FDF"><enum>(10)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the Secretary of the Interior.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H66CC6019DBE5400E8532BFBE947C9858"><enum>(11)</enum><header>Tribal organization</header><text display-inline="yes-display-inline">The term <term>tribal organization</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE9502CE40181411191F57DB283EFFE24"><enum>(A)</enum><text display-inline="yes-display-inline">the recognized governing body of an Indian tribe; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H6618517AB75141B0AEE1BFE5936B42DF"><enum>(B)</enum><text display-inline="yes-display-inline">any legally established organization of Indians that is controlled, sanctioned, or chartered by the governing body or democratically elected by the adult members of the Indian community to be served by the organization.</text></subparagraph></paragraph></section>
<section commented="no" display-inline="no-display-inline" id="HCE8B63D547D848F492DACCF80AF8B64" section-type="subsequent-section"><enum>103.</enum><header>Rural water supply program</header>
<subsection commented="no" display-inline="no-display-inline" id="H3F093D060C34451200012481E08D2E8E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary, in cooperation with non-Federal project entities and consistent with this title, shall establish and carry out a rural water supply program in Reclamation States to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H209781159FEB46F400983E558B4B1325"><enum>(1)</enum><text display-inline="yes-display-inline">investigate and identify opportunities to ensure safe and adequate rural water supply projects for domestic, municipal, and industrial use in small communities and rural areas of the Reclamation States;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H681D0C362147491AA6DBCDF255D465C2"><enum>(2)</enum><text display-inline="yes-display-inline">plan the design and construction, through the conduct of appraisal investigations and feasibility studies, of rural water supply projects in Reclamation States; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H249D9FD8C0F1470E8EEBD4F85091E1C"><enum>(3)</enum><text>oversee, as appropriate, the construction of rural water supply projects in Reclamation States that are recommended by the Secretary in a feasibility report developed pursuant to section 106 and subsequently authorized by Congress.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H9529826762CE406700BD2F443F66CC"><enum>(b)</enum><header>Non-Federal project entity</header><text display-inline="yes-display-inline">Any activity carried out under this title shall be carried out in cooperation with a qualifying non-Federal project entity, consistent with this title.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HEC4021CDB47649ABB8FF1FB4DB8E8F83"><enum>(c)</enum><header>Eligibility criteria</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Secretary shall, consistent with this title, develop and publish in the Federal Register criteria for—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H842E1C959AA647C48C2E41E771E6E410"><enum>(1)</enum><text display-inline="yes-display-inline">determining the eligibility of a rural community for assistance under the Program; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H9EDC5EB3DE2740EAA8F8B99D5EC4F38E"><enum>(2)</enum><text display-inline="yes-display-inline">prioritizing requests for assistance under the Program.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H995A4C4BDE504BAF9DB9FFEF41893F38"><enum>(d)</enum><header>Factors</header><text display-inline="yes-display-inline">The criteria developed under subsection (c) shall take into account such factors as whether—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDC0A01224FEB405B97C71EC0E6B9EE7B"><enum>(1)</enum><text display-inline="yes-display-inline">a rural water supply project—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE370572B8A6C4255863CC3C8548DE7F8"><enum>(A)</enum><text display-inline="yes-display-inline">serves—</text>
<clause commented="no" display-inline="no-display-inline" id="HFDEA5036051F4D9797ACA608B85CD148"><enum>(i)</enum><text display-inline="yes-display-inline">rural areas and small communities; or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H8B49B804C75440C782D5C97511912500"><enum>(ii)</enum><text display-inline="yes-display-inline">Indian tribes; or</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H90F3B1E3F96E4C15A9B3663D1E3657EF"><enum>(B)</enum><text display-inline="yes-display-inline">promotes and applies a regional or watershed perspective to water resources management;</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBEFE0903706B4EE58563A3615B6D977D"><enum>(2)</enum><text display-inline="yes-display-inline">there is an urgent and compelling need for a rural water supply project that would—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9ECF5CE721A14760BCAA0955FCEC5E59"><enum>(A)</enum><text display-inline="yes-display-inline">improve the health or aesthetic quality of water;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5F0AA88087774C718F8DFBACEC1F81CD"><enum>(B)</enum><text display-inline="yes-display-inline">result in continuous, measurable, and significant water quality benefits; or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H46DE9D29227F4469AC1F42A927FA3681"><enum>(C)</enum><text display-inline="yes-display-inline">address current or future water supply needs;</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HFA7364D4CF7A4FD29B6891460000A6E"><enum>(3)</enum><text display-inline="yes-display-inline">a rural water supply project helps meet applicable requirements established by law; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H35AFBDCC47324F3AAE99740724C48FB"><enum>(4)</enum><text display-inline="yes-display-inline">a rural water supply project is cost effective.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H970DBA27A0B344ECA565D3B857AEE000"><enum>(e)</enum><header>Inclusions</header><text display-inline="yes-display-inline">The Secretary may include—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H24435EF954DE48509E02BD26F4029179"><enum>(1)</enum><text display-inline="yes-display-inline">to the extent that connection provides a reliable water supply, a connection to preexisting infrastructure (including impoundments and conveyance channels) as part of a rural water supply project; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF91AF01E473542C8A566004C4E7555BB"><enum>(2)</enum><text display-inline="yes-display-inline">notwithstanding the limitation on population under section 102(9)(A), a town or community with a population in excess of 50,000 inhabitants in an area served by a rural water supply project if, at the discretion of the Secretary, the town or community is considered to be a critical partner in the rural supply project.</text></paragraph></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H2618175451C34700B87FD23FF6ADEB07" section-type="subsequent-section"><enum>104.</enum><header>Rural water programs assessment</header>
<subsection commented="no" display-inline="no-display-inline" id="HF4D1D2F9138048ABB189B11990FDE967"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In consultation with the Secretary of Agriculture, the Administrator of the Environmental Protection Agency, the Director of the Indian Health Service, the Secretary of Housing and Urban Development, and the Secretary of the Army, the Secretary shall develop an assessment of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3502178317FA4D95938530DBEF02E8BD"><enum>(1)</enum><text display-inline="yes-display-inline">the status of all rural water supply projects under the jurisdiction of the Secretary authorized but not completed prior to the date of enactment of this Act, including appropriation amounts, the phase of development, total anticipated costs, and obstacles to completion;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF0D8D6971F5D413E8E39FA68E0C05142"><enum>(2)</enum><text display-inline="yes-display-inline">the current plan (including projected financial and workforce requirements) for the completion of the projects identified in paragraph (1) within the time frames established under the provisions of law authorizing the projects or the final engineering reports for the projects;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF290A669171145B299F2F0F3DC2A8B0"><enum>(3)</enum><text display-inline="yes-display-inline">the demand for new rural water supply projects;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H370DFE580C40464AADD2DDA0CF86E9A8"><enum>(4)</enum><text display-inline="yes-display-inline">rural water programs within other agencies and a description of the extent to which those programs provide support for rural water supply projects and water treatment programs in Reclamation States, including an assessment of the requirements, funding levels, and conditions of eligibility for the programs assessed;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HABAF513710764D4F8CD707ADEA886033"><enum>(5)</enum><text display-inline="yes-display-inline">the extent of the demand that the Secretary can meet with the Program;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB206C646B4744768908214E9A57D6700"><enum>(6)</enum><text display-inline="yes-display-inline">how the Program will complement authorities already within the jurisdiction of the Secretary and the heads of the agencies with whom the Secretary consults; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H653CFA9E2BF242EB9FA547F1742B1698"><enum>(7)</enum><text>improvements that can be made to coordinate and integrate the authorities of the agencies with programs evaluated under paragraph (4), including any recommendations to consolidate some or all of the activities of the agencies with respect to rural water supply.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HCD9E406EDF0B4A13A8E0D7A6B18E1436"><enum>(b)</enum><header>Consultation with states</header><text>Before finalizing the assessment developed under subsection (a), the Secretary shall solicit comments from States with identified rural water needs.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HCA13A9B609FC4845009822254D8EEFEA"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives a detailed report on the assessment conducted under subsection (a).</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H84CFCB9096DA4CEA97E86C70578B0080" section-type="subsequent-section"><enum>105.</enum><header>Appraisal investigations</header>
<subsection commented="no" display-inline="no-display-inline" id="H4C0DEB134052424FB65E937309D550D0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">On request of a non-Federal project entity with respect to a proposed rural water supply project that meets the eligibility criteria published under section 103(c) and subject to the availability of appropriations, the Secretary may—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8852478A77384116BC83D4914098D563"><enum>(1)</enum><text display-inline="yes-display-inline">receive and review an appraisal investigation that is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H921BCF8BEBF843D29C98F7CEE9EDEB5"><enum>(A)</enum><text display-inline="yes-display-inline">developed by the non-Federal project entity, with or without support from the Secretary; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H3736C312687A4B1D9454B1CA00B9A3B4"><enum>(B)</enum><text display-inline="yes-display-inline">submitted to the Secretary by the non-Federal project entity;</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H4F908B8CC2AF4FCDB6F2637E00FB9691"><enum>(2)</enum><text display-inline="yes-display-inline">conduct an appraisal investigation; or</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H736EEA78539E4C4A822837E72668936C"><enum>(3)</enum><text display-inline="yes-display-inline">provide a grant to, or enter into a cooperative agreement with, the non-Federal project entity to conduct an appraisal investigation, if the Secretary determines that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA02A88444701491197EB442532E309E1"><enum>(A)</enum><text display-inline="yes-display-inline">the non-Federal project entity is qualified to complete the appraisal investigation in accordance with the criteria published under section 103(c); and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HF07B8C4F901C4C5C9B2900A0B97C3F59"><enum>(B)</enum><text display-inline="yes-display-inline">using the non-Federal project entity to conduct the appraisal investigation is a cost-effective alternative for completing the appraisal investigation.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H57CC97BE493B4BE58979B1F29580D401"><enum>(b)</enum><header>Deadline</header><text display-inline="yes-display-inline">An appraisal investigation conducted under subsection (a) shall be scheduled for completion not later than 2 years after the date on which the appraisal investigation is initiated.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HED88B70669D04069A21557CE0543FF68"><enum>(c)</enum><header>Appraisal report</header><text display-inline="yes-display-inline">In accordance with subsection (f), after an appraisal investigation is submitted to the Secretary under subsection (a)(1) or completed under paragraph (2) or (3) of subsection (a), the Secretary shall prepare an appraisal report that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2541CBFB8827420697D3A21F3888E618"><enum>(1)</enum><text display-inline="yes-display-inline">considers—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H37A8A205FEDC45F8809EC4D6FDB9A1F"><enum>(A)</enum><text display-inline="yes-display-inline">whether the project meets—</text>
<clause commented="no" display-inline="no-display-inline" id="H39DACD5F3D8245E0A449C57DBC71E02"><enum>(i)</enum><text display-inline="yes-display-inline">the appraisal criteria developed under subsection (d); and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H8C06485E97A14BE092ABE3004700E3DF"><enum>(ii)</enum><text display-inline="yes-display-inline">the eligibility criteria developed under section 103(c);</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H9EB8C9764D9544ED973859A6F6D5A804"><enum>(B)</enum><text display-inline="yes-display-inline">whether viable water supplies and water rights exist to supply the project, including all practicable water sources such as lower quality waters, nonpotable waters, and water reuse-based water supplies;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD5112C466FF649E79690E92B6EF88466"><enum>(C)</enum><text display-inline="yes-display-inline">whether the project has a positive effect on public health and safety;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H54DE0CD74D3B4710B5D102A1F558AEAA"><enum>(D)</enum><text display-inline="yes-display-inline">whether the project will meet water demand, including projected future needs;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H2F9A3DE93E0146D5A3B085D46B303EC4"><enum>(E)</enum><text display-inline="yes-display-inline">the extent to which the project provides environmental benefits, including source water protection;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H4F97402BCD6644698E041634D386F877"><enum>(F)</enum><text display-inline="yes-display-inline">whether the project applies a regional or watershed perspective and promotes benefits in the region in which the project is carried out;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5C5A7B4B25524A5BA6E969E1004965A1"><enum>(G)</enum><text display-inline="yes-display-inline">whether the project—</text>
<clause commented="no" display-inline="no-display-inline" id="HE8BBE6DA6251434C8D08B1EF9C1643C6"><enum>(i)</enum>
<subclause commented="no" display-inline="yes-display-inline" id="HF89DF4E1F59F4E59BA45F97B04C457F6"><enum>(I)</enum><text display-inline="yes-display-inline">implements an integrated resources management approach; or</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HC90D39CAB7C241F38CFCB7742F21D38B" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">enhances water management flexibility, including providing for—</text>
<item commented="no" display-inline="no-display-inline" id="HF3B055B83AE44559A44137AE4EE4C720"><enum>(aa)</enum><text display-inline="yes-display-inline">local control to manage water supplies under varying water supply conditions; and</text></item>
<item commented="no" display-inline="no-display-inline" id="H65C777C406AA4AA5B58ED0701C95FE50"><enum>(bb)</enum><text display-inline="yes-display-inline">participation in water banking and markets for domestic and environmental purposes; and</text></item></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="H26CDB2FB1202490892BD9700C8271B20"><enum>(ii)</enum><text display-inline="yes-display-inline">promotes long-term protection of water supplies;</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HC0097EAD3335465ABD2BC4092BF31EB3"><enum>(H)</enum><text display-inline="yes-display-inline">preliminary cost estimates for the project; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H6A9515A1EA494E2CA7DE8C00A85D74"><enum>(I)</enum><text display-inline="yes-display-inline">whether the non-Federal project entity has the capability to pay 100 percent of the costs associated with the operations, maintenance, and replacement of the facilities constructed or developed as part of the rural water supply project; and</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBC6A9C5863164D37B924C253AB38BF3C"><enum>(2)</enum><text display-inline="yes-display-inline">provides recommendations on whether a feasibility study should be initiated under section 106(a).</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H35A652F0DBF345A98E44DEC08A1680"><enum>(d)</enum><header>Appraisal criteria</header>
<paragraph commented="no" display-inline="no-display-inline" id="H280D54D2E9C54DC48129DC8EDD30EC06"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Secretary shall promulgate criteria (including appraisal factors listed under subsection (c)) against which the appraisal investigations shall be assessed for completeness and appropriateness for a feasibility study.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC8317686CD2E4F49B945B38B7692CE62"><enum>(2)</enum><header>Inclusions</header><text display-inline="yes-display-inline">To minimize the cost of a rural water supply project to a non-Federal project entity, the Secretary shall include in the criteria methods to scale the level of effort needed to complete the appraisal investigation relative to the total size and cost of the proposed rural water supply project.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H194AE47CD6C1443E86CDD700D30B60"><enum>(e)</enum><header>Review of appraisal investigation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H75C0A441B4D344B4A52F07C34BF400E9"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 90 days after the date of submission of an appraisal investigation under paragraph (1) or (3) of subsection (a), the Secretary shall provide to the non-Federal entity that conducted the investigation a determination of whether the investigation has included the information necessary to determine whether the proposed rural water supply project satisfies the criteria promulgated under subsection (d).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7D221B8F50E44A5D971CE3F02CDF2B98"><enum>(2)</enum><header>No satisfaction of criteria</header><text display-inline="yes-display-inline">If the Secretary determines that the appraisal investigation submitted by a non-Federal entity does not satisfy the criteria promulgated under subsection (d), the Secretary shall inform the non-Federal entity of the reasons why the appraisal investigation is deficient.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC84B2C703C654630AFFBD00078972006"><enum>(3)</enum><header>Responsibility of secretary</header><text display-inline="yes-display-inline">If an appraisal investigation as first submitted by a non-Federal entity does not provide all necessary information, as defined by the Secretary, the Secretary shall have no obligation to conduct further analysis until the non-Federal project entity submitting the appraisal study conducts additional investigation and resubmits the appraisal investigation under this subsection.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HE6993A9F4D864059B4A50003A3C2BAD0"><enum>(f)</enum><header>Appraisal report</header><text>Once the Secretary has determined that an investigation provides the information necessary under subsection (e), the Secretary shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFB946357CE044544B88836BDF2E1779"><enum>(1)</enum><text>complete the appraisal report required under subsection (c);</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H18B9438DF8B24BC2AE90C87487607452"><enum>(2)</enum><text>make available to the public, on request, the appraisal report prepared under this title; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBE54E4A81235403B864ECFAB845DDEC8"><enum>(3)</enum><text>promptly publish in the Federal Register a notice of the availability of the results.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HB92184B2232743508BC6E4D632D9ABC6"><enum>(g)</enum><header>Costs</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEF0857B86E174FCFAEFE22782DC8F556"><enum>(1)</enum><header>Federal share</header><text display-inline="yes-display-inline">The Federal share of an appraisal investigation conducted under subsection (a) shall be 100 percent of the total cost of the appraisal investigation, up to $200,000.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HDD543B9B636A46B98DF5E9D4EF68B10"><enum>(2)</enum><header>Non-federal share</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HCBD4C356BA1F41F88DD6BF9218A2EB7C"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), if the cost of conducting an appraisal investigation is more than $200,000, the non-Federal share of the costs in excess of $200,000 shall be 50 percent.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H6CFA01137AD74F43A9B0AC26D354FAA3"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">The Secretary may reduce the non-Federal share required under subparagraph (A) if the Secretary determines that there is an overwhelming Federal interest in the appraisal investigation.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD9BEF80040324A6EB1AFB469B25CED57"><enum>(C)</enum><header>Form</header><text>The non-Federal share under subparagraph (A) may be in the form of any in-kind services that the Secretary determines would contribute substantially toward the conduct and completion of the appraisal investigation.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H866A1B76485D489581510073C4887486"><enum>(h)</enum><header>Consultation; Identification of Funding Sources</header><text display-inline="yes-display-inline">In conducting an appraisal investigation under subsection (a)(2), the Secretary shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H33CF77C44AF84E4AA0F50548AFB5F534"><enum>(1)</enum><text display-inline="yes-display-inline">consult and cooperate with the non-Federal project entity and appropriate State, tribal, regional, and local authorities;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H169DE2B470D94DFC80CA2300211C8034"><enum>(2)</enum><text display-inline="yes-display-inline">consult with the heads of appropriate Federal agencies to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB5D13B76C75946F987512101C2EEF4A8"><enum>(A)</enum><text display-inline="yes-display-inline">ensure that the proposed rural water supply project does not duplicate a project carried out under the authority of the agency head; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD56609E24FE7434CB98CD1DFC01C1EAD"><enum>(B)</enum><text display-inline="yes-display-inline">if a duplicate project is being carried out, identify the authority under which the duplicate project is being carried out; and</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD8057F8D89524249B15CA2A0C63C0536"><enum>(3)</enum><text display-inline="yes-display-inline">identify what funding sources are available for the proposed rural water supply project.</text></paragraph></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H3914ED98353D4DB09205219979912BBD" section-type="subsequent-section"><enum>106.</enum><header>Feasibility studies</header>
<subsection commented="no" display-inline="no-display-inline" id="HE9C25A6362204824A96BECBFD331613F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">On completion of an appraisal report under section 105(c) that recommends undertaking a feasibility study and subject to the availability of appropriations, the Secretary shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDE1DE17F863F4AFEA19EBC031C5784E3"><enum>(1)</enum><text display-inline="yes-display-inline">in cooperation with a non-Federal project entity, carry out a study to determine the feasibility of the proposed rural water supply project;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H17DE710E23FC4473BAA13586CB7F2B5E"><enum>(2)</enum><text display-inline="yes-display-inline">receive and review a feasibility study that is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8AE1043A230A491698C5200045FE300"><enum>(A)</enum><text display-inline="yes-display-inline">developed by the non-Federal project entity, with or without support from the Secretary; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H45F6675853E44058B48B7C11D2DEDC13"><enum>(B)</enum><text display-inline="yes-display-inline">submitted to the Secretary by the non-Federal project entity; or</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H4A7ACCC4E3F640269105EA508FE69720"><enum>(3)</enum><text display-inline="yes-display-inline">provide a grant to, or enter into a cooperative agreement with, a non-Federal project entity to conduct a feasibility study, for submission to the Secretary, if the Secretary determines that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDD9A0FC049DE4EFC932B33009BAC2E05"><enum>(A)</enum><text display-inline="yes-display-inline">the non-Federal entity is qualified to complete the feasibility study in accordance with the criteria promulgated under subsection (d); and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE5B1D64777604484B5D9C8CD1CC36E7F"><enum>(B)</enum><text display-inline="yes-display-inline">using the non-Federal project entity to conduct the feasibility study is a cost-effective alternative for completing the appraisal investigation.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HE305C20ABE384859AA481B516CFCFCD7"><enum>(b)</enum><header>Review of non-Federal feasibility studies</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB90005581BA047C9B7B2CD3E97599300"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In conducting a review of a feasibility study submitted under paragraph (2) or (3) of subsection (a), the Secretary shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB838A1C0E9F14BAEAC952EB6B731F653"><enum>(A)</enum><text display-inline="yes-display-inline">in accordance with the feasibility factors described in subsection (c) and the criteria promulgated under subsection (d), assess the completeness of the feasibility study; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H8D0E9A590CAD4F40A100EB87F91E96F"><enum>(B)</enum><text display-inline="yes-display-inline">if the Secretary determines that a feasibility study is not complete, notify the non-Federal entity of the determination.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H58FC56FAEBCB432BA7590034D202A67B"><enum>(2)</enum><header>Revisions</header><text display-inline="yes-display-inline">If the Secretary determines under paragraph (1)(B) that a feasibility study is not complete, the non-Federal entity shall pay any costs associated with revising the feasibility study.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HABB68444790C4573903B44E2537320E9"><enum>(c)</enum><header>Feasibility factors</header><text display-inline="yes-display-inline">Feasibility studies authorized or reviewed under this title shall include an assessment of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA0CCEBC5C32840EE9BE50FAF7152DC1"><enum>(1)</enum><text display-inline="yes-display-inline">near- and long-term water demand in the area to be served by the rural water supply project;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H3B9CE836196B4D9FBD823CC77D037D6D"><enum>(2)</enum><text display-inline="yes-display-inline">advancement of public health and safety of any existing rural water supply project and other benefits of the proposed rural water supply project;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC46F834DDA1043A588EEC8E6257450CC"><enum>(3)</enum><text display-inline="yes-display-inline">alternative new water supplies in the study area, including any opportunities to treat and use low-quality water, nonpotable water, water reuse-based supplies, and brackish and saline waters through innovative and economically viable treatment technologies;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H2F9BE22CF06F423F8346C0CC836F1581"><enum>(4)</enum><text display-inline="yes-display-inline">environmental quality and source water protection issues related to the rural water supply project;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H5886C4879AB94352A6B78D62CBD1BB4"><enum>(5)</enum><text display-inline="yes-display-inline">innovative opportunities for water conservation in the study area to reduce water use and water system costs, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H08707750982740B29BF0098C8481263D"><enum>(A)</enum><text display-inline="yes-display-inline">nonstructural approaches to reduce the need for the project; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HA83898C4D737494E932CF56687F387EC"><enum>(B)</enum><text display-inline="yes-display-inline">demonstration technologies;</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H2410326455CE4A818CB540F58843DAE2"><enum>(6)</enum><text display-inline="yes-display-inline">the extent to which the project and alternatives take advantage of economic incentives and the use of market-based mechanisms;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H9300E722EBB04EFAB5E411749C90DCFE"><enum>(7)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H402948C034BC42DF901EEBDB5586A557"><enum>(A)</enum><text display-inline="yes-display-inline">the construction costs and projected operations, maintenance, and replacement costs of all alternatives; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H0A10370AB63E4DA1BF28D029A433B03F" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">the economic feasibility and lowest cost method of obtaining the desired results of each alternative, taking into account the Federal cost-share;</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6D0F6568270E40E7B724F4345091E886"><enum>(8)</enum><text display-inline="yes-display-inline">the availability of guaranteed loans for a proposed rural water supply project;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H44A3A7F96D6C462BBBFC0020DF099419"><enum>(9)</enum><text display-inline="yes-display-inline">the financial capability of the non-Federal project entity to pay the non-Federal project entity's proportionate share of the design and construction costs and 100 percent of operations, maintenance, and replacement costs, including the allocation of costs to each non-Federal project entity in the case of multiple entities;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7DBF8180439746599711633DB1001E09"><enum>(10)</enum><text display-inline="yes-display-inline">whether the non-Federal project entity has developed an operations, management, and replacement plan to assist the non-Federal project entity in establishing rates and fees for beneficiaries of the rural water supply project that includes a schedule identifying the annual operations, maintenance, and replacement costs that should be allocated to each non-Federal entity participating in the project;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBDECD414C3F548CBA1D45FECAD860F5"><enum>(11)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H6BD9BB10F0D3464DB3A73E00AA3CC645"><enum>(A)</enum><text display-inline="yes-display-inline">the non-Federal project entity administrative organization that would implement construction, operations, maintenance, and replacement activities; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H4FE1A2CACD774D0EBFEE3E3F944724F0" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">the fiscal, administrative, and operational controls to be implemented to manage the project;</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HEDD9C5F8B5324C0CB900C549B94EA120"><enum>(12)</enum><text display-inline="yes-display-inline">the extent to which assistance for rural water supply is available under other Federal authorities;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD7F4477602E8441AA75EE32286489B9"><enum>(13)</enum><text display-inline="yes-display-inline">the engineering, environmental, and economic activities to be undertaken to carry out the proposed rural water supply project;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H35718CA8DEAD438C8CA191AD8087F18E"><enum>(14)</enum><text display-inline="yes-display-inline">the extent to which the project involves partnerships with other State, local, or tribal governments or Federal entities; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBD75B1211A8D459686002EFEBCB15C5"><enum>(15)</enum><text display-inline="yes-display-inline">in the case of a project intended for Indian tribes and tribal organizations, the extent to which the project addresses the goal of economic self-sufficiency.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HCEEA05C478464A58B04419BF9369F595"><enum>(d)</enum><header>Feasibility study criteria</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9D73335A933041B4A81DC5FFACB074EE"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 18 months after the date of enactment of this Act, the Secretary shall promulgate criteria (including the feasibility factors listed under subsection (c)) under which the feasibility studies shall be assessed for completeness and appropriateness.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H5B243CA49168408ABFF9E36293002D92"><enum>(2)</enum><header>Inclusions</header><text display-inline="yes-display-inline">The Secretary shall include in the criteria promulgated under paragraph (1) methods to scale the level of effort needed to complete the feasibility assessment relative to the total size and cost of the proposed rural water supply project and reduce total costs to non-Federal entities.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFE01D2BFAE8544C18235E70715B71EC4"><enum>(e)</enum><header>Feasibility report</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4720E21CEE82473AA1B02CB97DC51C7D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">After completion of appropriate feasibility studies for rural water supply projects that address the factors described in subsection (c) and the criteria promulgated under subsection (d), the Secretary shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD63290D920F348FB9CD82EBE005D8E72"><enum>(A)</enum><text display-inline="yes-display-inline">develop a feasibility report that includes—</text>
<clause commented="no" display-inline="no-display-inline" id="HA47C160C6425412D952C03E193C53237"><enum>(i)</enum><text display-inline="yes-display-inline">a recommendation of the Secretary on—</text>
<subclause commented="no" display-inline="no-display-inline" id="H582D783BB1774600809D7D6B647B4D34"><enum>(I)</enum><text display-inline="yes-display-inline">whether the rural water supply project should be authorized for construction; and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HA58DE2769D8C4E95BF0033B16695C1D3"><enum>(II)</enum><text display-inline="yes-display-inline">the appropriate non-Federal share of construction costs, which shall be—</text>
<item commented="no" display-inline="no-display-inline" id="H6AB59E69C33247AE81863E31B9239200"><enum>(aa)</enum><text display-inline="yes-display-inline">at least 25 percent of the total construction costs; and</text></item>
<item commented="no" display-inline="no-display-inline" id="HE8EFC203E27C47A5B783F1A61528143E"><enum>(bb)</enum><text display-inline="yes-display-inline">determined based on an analysis of the capability-to-pay information considered under subsections (c)(9) and (f); and</text></item></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="H3F17EEC22F8A490AAD05028400F61B28"><enum>(ii)</enum><text display-inline="yes-display-inline">if the Secretary recommends that the project should be authorized for construction—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA20029B2D2DA45148FDCBBDF37D1622E"><enum>(I)</enum><text display-inline="yes-display-inline">what amount of grants, loan guarantees, or combination of grants and loan guarantees should be used to provide the Federal cost share;</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HC004B3F836B744598E4CE72C7EFCE3CA"><enum>(II)</enum><text display-inline="yes-display-inline">a schedule that identifies the annual operations, maintenance, and replacement costs that should be allocated to each non-Federal entity participating in the rural water supply project; and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H30DA5BA3886943D5944202910073CA77"><enum>(III)</enum><text display-inline="yes-display-inline">an assessment of the financial capability of each non-Federal entity participating in the rural water supply project to pay the allocated annual operation, maintenance, and replacement costs for the rural water supply project;</text></subclause></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA5DD63DE6DC43829686932513CD7D73"><enum>(B)</enum><text display-inline="yes-display-inline">submit the report to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HECA28BB6402B40289B0470AA264DB415"><enum>(C)</enum><text display-inline="yes-display-inline">make the report publicly available, along with associated study documents; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HBBAEC5DB1EFD4A6DBCF3DDD9B0371B55"><enum>(D)</enum><text display-inline="yes-display-inline">publish in the Federal Register a notice of the availability of the results.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4AF2D0635A344B74A5C11746DCFC37FE"><enum>(f)</enum><header>Capability-To-Pay</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF0B68140342D49D4B5B1FF6DE51C29E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In evaluating a proposed rural water supply project under this section, the Secretary shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H26379DA25F1C4AD300B509DDB9DD06F9"><enum>(A)</enum><text display-inline="yes-display-inline">consider the financial capability of any non-Federal project entities participating in the rural water supply project to pay 25 percent or more of the capital construction costs of the rural water supply project; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HA3B4E5E2B4A2431C99D48B80A001E42D"><enum>(B)</enum><text display-inline="yes-display-inline">recommend an appropriate Federal share and non-Federal share of the capital construction costs, as determined by the Secretary.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7FA455DA5592402DA617F920BBC4BE0"><enum>(2)</enum><header>Factors</header><text display-inline="yes-display-inline">In determining the financial capability of non-Federal project entities to pay for a rural water supply project under paragraph (1), the Secretary shall evaluate factors for the project area, relative to the State average, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1E91DFF4DD4343D2A5B1FCE4890011AB"><enum>(A)</enum><text display-inline="yes-display-inline">per capita income;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD78C83A1564A406AAE3C5CB564CB57FD"><enum>(B)</enum><text display-inline="yes-display-inline">median household income;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HA63BDD3B5C31499EA67698912E0055B2"><enum>(C)</enum><text display-inline="yes-display-inline">the poverty rate;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HC84694EC648C48F9BFAFBD7004CAD"><enum>(D)</enum><text display-inline="yes-display-inline">the ability of the non-Federal project entity to raise tax revenues or assess fees;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H49A94B7933EE4F2DBDD800CBEA493B48"><enum>(E)</enum><text display-inline="yes-display-inline">the strength of the balance sheet of the non-Federal project entity; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE6232B4B0057498698EE003CD4BB63FD"><enum>(F)</enum><text display-inline="yes-display-inline">the existing cost of water in the region.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HDA76412C9DED4204B76400443E54E0A0"><enum>(3)</enum><header>Indian tribes</header><text display-inline="yes-display-inline">In determining the capability-to-pay of Indian tribe project beneficiaries, the Secretary may consider deferring the collection of all or part of the non-Federal construction costs apportioned to Indian tribe project beneficiaries unless or until the Secretary determines that the Indian tribe project beneficiaries should pay—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6C79AA25CCD845D4B301D8DA66F8D29C"><enum>(A)</enum><text display-inline="yes-display-inline">the costs allocated to the beneficiaries; or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HC71FF6B4B66C42E7001CB5F8330677C4"><enum>(B)</enum><text display-inline="yes-display-inline">an appropriate portion of the costs.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H0405C72AD9B149C6B24152D2EE354DD4"><enum>(g)</enum><header>Cost-Sharing requirement</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB345A6562F5B49068CE652F559AD26C7"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this subsection, the Federal share of the cost of a feasibility study carried out under this section shall not exceed 50 percent of the study costs.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H72C052DBC1BF4A60B0907F26CC8CD533"><enum>(2)</enum><header>Form</header><text display-inline="yes-display-inline">The non-Federal share under paragraph (1) may be in the form of any in-kind services that the Secretary determines would contribute substantially toward the conduct and completion of the study.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H388C70CA2FF9402F83E0045BC563875"><enum>(3)</enum><header>Financial hardship</header><text display-inline="yes-display-inline">The Secretary may increase the Federal share of the costs of a feasibility study if the Secretary determines, based on a demonstration of financial hardship, that the non-Federal participant is unable to contribute at least 50 percent of the costs of the study.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC62B7DE94AAC443D924B733DC33BA60"><enum>(4)</enum><header>Larger communities</header><text display-inline="yes-display-inline">In conducting a feasibility study of a rural water supply system that includes a community with a population in excess of 50,000 inhabitants, the Secretary may require the non-Federal project entity to pay more than 50 percent of the costs of the study.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5B62E42A9ED04068816B69D14CDFEBA"><enum>(h)</enum><header>Consultation and cooperation</header><text display-inline="yes-display-inline">In addition to the non-Federal project entity, the Secretary shall consult and cooperate with appropriate Federal, State, tribal, regional, and local authorities during the conduct of each feasibility assessment and development of the feasibility report conducted under this title.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H0241118CD70D4CFD865BCCADA2437C65" section-type="subsequent-section"><enum>107.</enum><header>Miscellaneous</header>
<subsection commented="no" display-inline="no-display-inline" id="H4069F2439E62411CB4EB42EAF85B175"><enum>(a)</enum><header>Authority of Secretary</header><text display-inline="yes-display-inline">The Secretary may enter into contracts, financial assistance agreements, and such other agreements, and promulgate such regulations, as are necessary to carry out this title.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H518F32C57C6E448EBEBF42FAE6119C7"><enum>(b)</enum><header>Transfer of projects</header><text display-inline="yes-display-inline">Nothing in this title authorizes the transfer of pre-existing facilities or pre-existing components of any water system from Federal to private ownership or from private to Federal ownership.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HDBFE1728EAFD41988DE8CC95252442BA"><enum>(c)</enum><header>Federal reclamation law</header><text display-inline="yes-display-inline">Nothing in this title supersedes or amends any Federal law associated with a project, or portion of a project, constructed under Federal reclamation law.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H3B0FF16FBBB54A7E8557F6215BDEBA90"><enum>(d)</enum><header>Interagency coordination</header><text display-inline="yes-display-inline">The Secretary shall coordinate the Program carried out under this title with existing Federal and State rural water and wastewater programs to facilitate the most efficient and effective solution to meeting the water needs of the non-Federal project sponsors.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H286205045FD54C65000354FF99915DBD"><enum>(e)</enum><header>Multiple Indian tribes</header><text display-inline="yes-display-inline">In any case in which a contract is entered into with, or a grant is made, to an organization to perform services benefitting more than 1 Indian tribe under this title, the approval of each such Indian tribe shall be a prerequisite to entering into the contract or making the grant.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HE6F7681B739E441E895CB04E3E9EE2E"><enum>(f)</enum><header>Ownership of facilities</header><text display-inline="yes-display-inline">Title to any facility planned, designed, and recommended for construction under this title shall be held by the non-Federal project entity.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H34B204E7D04E4AEC95F94CFA70335830"><enum>(g)</enum><header>Expedited procedures</header><text>If the Secretary determines that a community to be served by a proposed rural water supply project has urgent and compelling water needs, the Secretary shall, to the maximum extent practicable, expedite appraisal investigations and reports conducted under section 105 and feasibility studies and reports conducted under section 106.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4DC1E337468445818EA397DEE400AAB4"><enum>(h)</enum><header>Effect on State water law</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCA7D2B47C3974E148383C75C6D60077B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Nothing in this title preempts or affects State water law or an interstate compact governing water.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H8709D7FDFA474C77945C9C868479D5E9"><enum>(2)</enum><header>Compliance required</header><text display-inline="yes-display-inline">The Secretary shall comply with State water laws in carrying out this title.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HF70C89EE299C495E806870A2E800FCCB"><enum>(i)</enum><header>No additional requirements</header><text display-inline="yes-display-inline">Nothing in this title requires a feasibility study for, or imposes any other additional requirements with respect to, rural water supply projects or programs that are authorized before the date of enactment of this Act.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HF2904742C52A4456A43194EB6CB89832" section-type="subsequent-section"><enum>108.</enum><header>Authorization of appropriations</header>
<subsection commented="no" display-inline="no-display-inline" id="HEBF13BE3E50C4CF393831E570054A823"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this title $20,000,000 for the period of fiscal years 2006 through 2015, to remain available until expended.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H62EB4ADD88AD49B5A85D9900DBD59700"><enum>(b)</enum><header>Rural water programs assessment</header><text display-inline="yes-display-inline">Of the amounts made available under subsection (a), not more than $1,000,000 may be made available to carry out section 104 for each of fiscal years 2006 and 2007.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H7B42E45CC0AD4E5193E0770538685118"><enum>(c)</enum><header>Limitation</header><text display-inline="yes-display-inline">No amounts made available under this section shall be used to pay construction costs associated with any rural water supply project.</text></subsection></section>
<enum>II</enum><header>Twenty-First Century Water Works Act</header>
<section commented="no" display-inline="no-display-inline" id="H7EC84A98E5214E76A2DAE42C08620500" section-type="subsequent-section"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Twenty-First Century Water Works Act</short-title></quote>.</text></section>
<section commented="no" display-inline="no-display-inline" id="H104A4F5CAB604812A7BEE30349C43EA1" section-type="subsequent-section"><enum>202.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H05CCACE502A24183AA1E59003191EEBF"><enum>(1)</enum><header>Indian Tribe</header><text display-inline="yes-display-inline">The term <term>Indian tribe</term> has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/450b">25 U.S.C. 450b</external-xref>).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0AB16500017C4E309153094DBCF52861"><enum>(2)</enum><header>Lender</header><text display-inline="yes-display-inline">The term <term>lender</term> means any non-Federal qualified institutional buyer (as defined in <external-xref legal-doc="usc" parsable-cite="usc/17/230">section 230.144A(a)</external-xref> of title 17, Code of Federal Regulation (or any successor regulation), known as Rule 144A(a) of the Securities and Exchange Commission and issued under the <act-name parsable-cite="SA33">Securities Act of 1933</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/77a">15 U.S.C. 77a et seq.</external-xref>)).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB71C6672794F428CA5AA9000D6879C08"><enum>(3)</enum><header>Loan guarantee</header><text display-inline="yes-display-inline">The term <term>loan guarantee</term> has the meaning given the term <quote>loan guarantee</quote> in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HA85A271BBBBC48428165004835F450A7"><enum>(4)</enum><header>Non-federal borrower</header><text display-inline="yes-display-inline">The term <term>non-Federal borrower</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC723966EC88E437AA8062451CFDAB4CB"><enum>(A)</enum><text display-inline="yes-display-inline">a State (including a department, agency, or political subdivision of a State); or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE5CC456CEC6D44AB81EBBB1D6C00D17E"><enum>(B)</enum><text display-inline="yes-display-inline">a conservancy district, irrigation district, canal company, water users’ association, Indian tribe, an agency created by interstate compact, or any other entity that has the capacity to contract with the United States under Federal reclamation law.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H748C565AEFCF4A37BC0158EEFF6E513B"><enum>(5)</enum><header>Obligation</header><text>The term <term>obligation</term> means a loan or other debt obligation that is guaranteed under this section.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HCAAD9B2CBFD742DAB6875092C329884"><enum>(6)</enum><header>Project</header><text display-inline="yes-display-inline">The term <term>project</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0247C00E8FAA4517845C7DA1B1B8840"><enum>(A)</enum><text display-inline="yes-display-inline">a rural water supply project (as defined in section 102(9)); or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H1E71F454B6EA4BBFB53E00A3E7658D89"><enum>(B)</enum><text display-inline="yes-display-inline">an extraordinary operation and maintenance activity for, or the rehabilitation of, a facility—</text>
<clause commented="no" display-inline="no-display-inline" id="H107E6372913C429A9502B16B7567F8DD"><enum>(i)</enum><text display-inline="yes-display-inline">that is authorized by Federal reclamation law and constructed by the United States under such law; or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H7A26D4F230FD4F5DAD0827EB1C15BB08"><enum>(ii)</enum><text display-inline="yes-display-inline">in connection with which there is a repayment or water service contract executed by the United States under Federal reclamation law.</text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB5BABAF4ADFB446EB6C6BC3E5B60E563"><enum>(7)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the Secretary of the Interior.</text></paragraph></section>
<section commented="no" display-inline="no-display-inline" id="HD1C297A6D5524703B7F706886EFF2212" section-type="subsequent-section"><enum>203.</enum><header>Project eligibility</header>
<subsection commented="no" display-inline="no-display-inline" id="H34A63043375549B9002200DE8F17243F"><enum>(a)</enum><header>Eligibility criteria</header>
<paragraph commented="no" display-inline="no-display-inline" id="H014528156B064277B881335B84F63C97"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall develop and publish in the Federal Register criteria for determining the eligibility of a project for financial assistance under section 204.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6683AC6309D94D09986800282CFB2661"><enum>(2)</enum><header>Inclusions</header><text display-inline="yes-display-inline">Eligibility criteria shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5DFBB704314A4FAF835F17DA6B298845"><enum>(A)</enum><text display-inline="yes-display-inline">submission of an application by the lender to the Secretary;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HFC48ABCFAC7E4B4AA53863005FAFD268"><enum>(B)</enum><text display-inline="yes-display-inline">demonstration of the creditworthiness of the project, including a determination by the Secretary that any financing for the project has appropriate security features to ensure repayment;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HDE98F504A0CF4C80AC1828CFBE2CD01"><enum>(C)</enum><text display-inline="yes-display-inline">demonstration by the non-Federal borrower, to the satisfaction of the Secretary, of the ability of the non-Federal borrower to repay the project financing from user fees or other dedicated revenue sources;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5376F3A9087945DDB530006940C18E00"><enum>(D)</enum><text display-inline="yes-display-inline">demonstration by the non-Federal borrower, to the satisfaction of the Secretary, of the ability of the non-Federal borrower to pay all operations, maintenance, and replacement costs of the project facilities; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HCCC0E54C209B4683BBD33587EAAD81"><enum>(E)</enum><text display-inline="yes-display-inline">such other criteria as the Secretary determines to be appropriate.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H1864CD0C96A246FAB5751587CE82A249"><enum>(b)</enum><header>Waiver</header><text display-inline="yes-display-inline">The Secretary may waive any of the criteria in subsection (a)(2) that the Secretary determines to be duplicative or rendered unnecessary because of an action already taken by the United States.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H14164798F2C1419DA1342D049C005C7F"><enum>(c)</enum><header>Projects previously authorized</header><text display-inline="yes-display-inline">A project that was authorized for construction under Federal reclamation laws prior to the date of enactment of this Act shall be eligible for assistance under this title, subject to the criteria established by the Secretary under subsection (a).</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H76ECC9A7F95345D793790025754F03D7"><enum>(d)</enum><header>Criteria for rural water supply projects</header><text display-inline="yes-display-inline">A rural water supply project that is determined to be feasible under section 106 is eligible for a loan guarantee under section 204.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H40A74B5812894C48AE07B100B7AFB48F" section-type="subsequent-section"><enum>204.</enum><header>Loan guarantees</header>
<subsection commented="no" display-inline="no-display-inline" id="H939E79CFC0B044BB9CB555A9A1D4C927"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">Subject to the availability of appropriations, the Secretary may make available to lenders for a project meeting the eligibility criteria established in section 203 loan guarantees to supplement private-sector or lender financing for the project.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HDD4C97D5A7494ADB8FAFAB139FB29518"><enum>(b)</enum><header>Terms and limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD5516055CCC745EB96D563BDDE0940C1"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Loan guarantees under this section for a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements as the Secretary determines to be appropriate to protect the financial interests of the United States.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7ED340DE07A347B18B142D93F30938E5"><enum>(2)</enum><header>Amount</header><text>Loan guarantees by the Secretary shall not exceed an amount equal to 90 percent of the cost of the project that is the subject of the loan guarantee, as estimated at the time at which the loan guarantee is issued.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H4230F8F840724A3700BDC888EF84BE10"><enum>(3)</enum><header>Interest rate</header><text>An obligation shall bear interest at a rate that does not exceed a level that the Secretary determines to be appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6BA67FFE5C10401AA0B6CA3E4379B241"><enum>(4)</enum><header>Amortization</header><text>A loan guarantee under this section shall provide for complete amortization of the loan guarantee within not more than 40 years.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HE537FE9EC96849189CEBA61E471C705D"><enum>(5)</enum><header>Nonsubordination</header><text>An obligation shall be subject to the condition that the obligation is not subordinate to other financing.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H2771A10101234AF3966420C13DF1A9FC"><enum>(c)</enum><header>Prepayment and refinancing</header><text display-inline="yes-display-inline">Any prepayment or refinancing terms on a loan guarantee shall be negotiated between the non-Federal borrower and the lender with the consent of the Secretary.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H0B46D8EBACE14E8C9885F4D7EAEB16C"><enum>205.</enum><header>Defaults</header>
<subsection commented="no" display-inline="no-display-inline" id="H4463E363ABFE46329145789335588B33"><enum>(a)</enum><header>Payments by secretary</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDDBF4A6CB2634493B75E7C91291D06E1"><enum>(1)</enum><header>In general</header><text>If a borrower defaults on the obligation, the holder of the loan guarantee shall have the right to demand payment of the unpaid amount from the Secretary.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBFA83B98EA824A8D8908153FBC85B9A2"><enum>(2)</enum><header>Payment required</header><text>By such date as may be specified in the loan guarantee or related agreements, the Secretary shall pay to the holder of the loan guarantee the unpaid interest on, and unpaid principal of, the obligation with respect to which the borrower has defaulted, unless the Secretary finds that there was not default by the borrower in the payment of interest or principal or that the default has been remedied.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H708B79436DCB48F99422CBA6AAB9B5CC"><enum>(3)</enum><header>Forbearance</header><text>Nothing in this subsection precludes any forbearance by the holder of the obligation for the benefit of the non-Federal borrower that may be agreed on by the parties to the obligation and approved by the Secretary.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H939107CEF48049EE8EFAB4BEB6967CE3"><enum>(b)</enum><header>Subrogation</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDC299894D3314FBBBDB1E68FCC00609E"><enum>(1)</enum><header>In general</header><text>If the Secretary makes a payment under subsection (a), the Secretary shall be subrogated to the rights of the recipient of the payment as specified in the loan guarantee or related agreements, including, as appropriate, the authority (nothwithstanding any other provision of law) to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF5340A760228407EB51924502BB09F67"><enum>(A)</enum><text>complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to the loan guarantee or related agreements; or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD6630D12F1CF4DC4B6E3F4889BB9C7D7"><enum>(B)</enum><text>permit the non-Federal borrower, pursuant to an agreement with the Secretary, to continue to pursue the purposes of the project if the Secretary determines the purposes to be in the public interest.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H02841E7F0A39473F98EDFAE55ED0083"><enum>(2)</enum><header>Superiority of rights</header><text>The rights of the Secretary, with respect to any property acquired pursuant to a loan guarantee or related agreement, shall be superior to the rights of any other person with respect to the property.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H03C1EAD2837F4BA2AAFA469F2C841846"><enum>(c)</enum><header>Payment of principal and interest by secretary</header><text>With respect to any obligation guaranteed under this section, the Secretary may enter into a contract to pay, and pay, holders of the obligation, for and on behalf of the non-Federal borrower, from funds appropriated for that purpose, the principal and interest payments that become due and payable on the unpaid balance of the obligation if the Secretary finds that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2E05C026B6684964A4000200691833E0"><enum>(1)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="HAEC564AD3643478A9BDEB05C7BBB344B"><enum>(A)</enum><text>the non-Federal borrower is unable to meet the payments and is not in default;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H207CBDABAE894FD5936941AC342FC7F" indent="up1"><enum>(B)</enum><text>it is in the public interest to permit the non-Federal borrower to continue to pursue the purposes of the project; and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H310ABD0925D647758612FACDF1B9C000" indent="up1"><enum>(C)</enum><text>the probable net benefit to the Federal Government in paying the principal and interest will be greater than that which would result in the event of a default;</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HE4E6BF510057408B9807C3A3065E8483"><enum>(2)</enum><text>the amount of the payment that the Secretary is authorized to pay shall be no greater than the amount of principal and interest that the non-Federal borrower is obligated to pay under the agreement being guaranteed; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H44D389586FAE4190A5FD397B1021151B"><enum>(3)</enum><text>the borrrower agrees to reimburse the Secretary for the payment (including interest) on terms and conditions that are satisfactory to the Secretary.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5A09D18A577D49E588694CE312AB9184"><enum>(d)</enum><header>Action by attorney general</header>
<paragraph commented="no" display-inline="no-display-inline" id="H34BC305D03D34637005E6FCFCCCB622"><enum>(1)</enum><header>Notification</header><text>If the non-Federal borrower defaults on an obligation, the Secretary shall notify the Attorney General of the default.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC6AF4EC727B94A809E4C778D3DE22CC9"><enum>(2)</enum><header>Recovery</header><text>On notification, the Attorney General shall take such action as is appropriate to recover the unpaid principal and interest due from—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5F8289983E7D470EA900CD089D8385AC"><enum>(A)</enum><text>such assets of the defaulting non-Federal borrower as are associated with the obligation; or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H445F051D2AD340B29335A5CE70400C9"><enum>(B)</enum><text>any other security pledged to secure the obligation.</text></subparagraph></paragraph></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H9184F0F4363245B2851429D101BEFC71" section-type="subsequent-section"><enum>206.</enum><header>Operations, maintenance, and replacement costs</header>
<subsection commented="no" display-inline="no-display-inline" id="H48FF77B4E3064C3E900005834C7998DC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The non-Federal share of operations, maintenance, and replacement costs for a project receiving Federal assistance under this title shall be 100 percent.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H709675A02E694982B51B59EBDD9CE8D1"><enum>(b)</enum><header>Plan</header><text display-inline="yes-display-inline">On request of the non-Federal borrower, the Secretary may assist in the development of an operation, maintenance, and replacement plan to provide the necessary framework to assist the non-Federal borrower in establishing rates and fees for project beneficiaries.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HF2441AE740C64E6DB7013F94728954B3" section-type="subsequent-section"><enum>207.</enum><header>Title to newly constructed facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="H5F4431C0634E4938985552B8926905F6"><enum>(a)</enum><header>New projects and facilities</header><text display-inline="yes-display-inline">All new projects or facilities constructed in accordance with this title shall remain under the jurisdiction and control of the non-Federal borrower subject to the terms of the repayment agreement.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HB7889590659749B08432429BC97140AB"><enum>(b)</enum><header>Existing projects and facilities</header><text display-inline="yes-display-inline">Nothing in this title affects the title of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF725832664D7469CB106614CA3DDB1AA"><enum>(1)</enum><text display-inline="yes-display-inline">reclamation projects authorized prior to the date of enactment of this Act;</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB2B5AEC3A68D4D89BF8695D89D6CA3E9"><enum>(2)</enum><text display-inline="yes-display-inline">works supplemental to existing reclamation projects; or</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC1D3982D93694CBCAFA4D6ED05342ECE"><enum>(3)</enum><text display-inline="yes-display-inline">works constructed to rehabilitate existing reclamation projects.</text></paragraph></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HE8D53D879ACD4BD7BCC771FBF36CD99" section-type="subsequent-section"><enum>208.</enum><header>Water rights</header>
<subsection commented="no" display-inline="no-display-inline" id="H6674BE3F6DDE47BB8EE187C2B7406100"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Nothing in this title preempts or affects State water law or an interstate compact governing water.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H3732BE3A8A6245C0A447B7FF98292C57"><enum>(b)</enum><header>Compliance required</header><text display-inline="yes-display-inline">The Secretary shall comply with State water laws in carrying out this title. Nothing in this title affects or preempts State water law or an interstate compact governing water.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H73DE6ABC0EEC4EAAA8F148E6CE2D209E" section-type="subsequent-section"><enum>209.</enum><header>Interagency coordination and cooperation</header>
<subsection commented="no" display-inline="no-display-inline" id="HDB8CB8F702CE4920A1661D43DF411E95"><enum>(a)</enum><header>Consultation</header><text display-inline="yes-display-inline">The Secretary shall consult with the Secretary of Agriculture before promulgating criteria with respect to financial appraisal functions and loan guarantee administration for activities carried out under this title.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HCA3EE753D8E546F1A45B83EB4CC200DC"><enum>(b)</enum><header>Memorandum of agreement</header><text display-inline="yes-display-inline">The Secretary and the Secretary of Agriculture may enter into a memorandum of agreement providing for Department of Agriculture financial appraisal functions and loan guarantee administration for activities carried out under this title.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H173A83CBEC1945F59CAADC1D954CBDDA"><enum>210.</enum><header>Records; audits</header>
<subsection commented="no" display-inline="no-display-inline" id="H9F026CA3806D4B6A89D68767F2683CFE"><enum>(a)</enum><header>In general</header><text>A recipient of a loan guarantee shall keep such records and other pertinent documents as the Secretary shall prescribe by regulation, including such records as the Secretary may require to facilitate an effective audit.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H9D53860F85E444DC9F3B89AD578739CD"><enum>(b)</enum><header>Access</header><text>The Secretary and the Comptroller General of the United States, or their duly authorized representatives, shall have access, for the purpose of audit, to the records and other pertinent documents.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H9BFD2FCE7A77448B88743CAFFB034D59"><enum>211.</enum><header>Full faith and credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H00FB73B3A76147A4B28BB1E48B6E7F0"><enum></enum><text>The full faith and credit of the United States is pledged to the payment of all guarantees issued under this section with respect to principal and interest.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H5BC2FE6B102D422600A9295D2E10AA40" section-type="subsequent-section"><enum>212.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated such sums as are necessary to carry out this title, to remain available until expended.</text></section>