§2404 Appraisal investigations

Summary

The Secretary may review or carry out an appraisal for a proposed rural water supply project when a non‑Federal group asks and money is available. The Secretary can either look over an appraisal the group made, do the appraisal themselves, or give a grant or cooperative agreement so the group can do it if the group is qualified and it is cost‑effective. Any appraisal must be finished within 2 years after it starts. After an appraisal is in, the Secretary must write a report that checks key points: whether the project meets the appraisal and eligibility rules; whether there are usable water supplies and rights (including lower‑quality, nonpotable, or reused water); effects on public health and safety; if it will meet current and future water needs; environmental and regional benefits; use of integrated resource planning and water management flexibility (like local control, water banking, and markets); preliminary cost estimates; and whether the non‑Federal group can pay 100% of operations, maintenance, and replacement costs. The report must also say if a full feasibility study should start. The Secretary had to set the appraisal rules within 1 year after December 22, 2006, and include ways to scale the work to keep costs down. Within 90 days of getting an appraisal, the Secretary must tell the group if the appraisal has the needed information and explain any problems. No further federal work is required until a sufficient appraisal is resubmitted. The federal government will pay 100% of appraisal costs up to $200,000; costs above $200,000 are split with the non‑Federal group paying 50% unless the Secretary lowers that share for strong federal interest. The non‑Federal share can be in‑kind services. When the Secretary does an appraisal, they must work with the group and with state, tribal, regional, local, and relevant federal officials to avoid duplication and identify funding.