§504 Rehabilitation and betterment of Federal reclamation projects, including small reclamation proj­ects; return of costs; interest; definitions; performance of work

Summary

Money specifically appropriated for fixing up or improving projects under the Small Reclamation Projects Act (Aug. 6, 1956, 70 Stat. 1044) and the Federal reclamation laws (June 17, 1902, 32 Stat. 388) can be spent only after the local organizations that run the projects agree to pay the money back. The Secretary of the Interior will set payment installments based on the organizations’ ability to pay and their other repayment obligations. Those installments should, as much as possible, match their construction charge payments. Loans for small reclamation projects must include interest under the Small Reclamation Projects Act. The Secretary’s repayment decision does not take effect until 60 days after he sends it to the Senate Committee on Energy and Natural Resources and the House Committee on Natural Resources, unless those committees approve an earlier effective date in writing. If Congress is not in session and the Secretary finds that delay would cause big hardship or harm to the project, the decision can take effect sooner when each committee’s chair and ranking minority member file written approval of that finding. “Rehabilitation and betterment” means maintenance and needed replacements that cannot be paid from normal operation and maintenance funds. It does not include construction costs that are repaid through construction charges (see section 485a(d)). The work may be done by contract, by government crews, or by a contract that lets the organization do the work itself under reasonable conditions the Secretary sets to protect the United States.