§508 Costs incurred in the modification of structures

Summary

Decides who pays for and who gets repaid when government water or dam structures are changed for safety or wear. If changes are needed because of age, normal wear, or because the operator did not do normal upkeep, those costs count as project costs and are charged to the original purposes of the project and repaid under existing rules. For the $100,000,000 provided by the Reclamation Safety of Dams Act of 1978, costs caused by new hydrologic or seismic information or by updated safety standards are not repayable under Federal Reclamation law. For other funds added by section 509, such safety-driven costs are repaid as follows: 15% is charged to the structure’s original purposes (except Jackson Lake Dam, which follows its operation and maintenance charge rules); irrigation costs that users can pay must be repaid within 50 years from the year the work is mostly done (those they cannot pay follow existing law); recreation and fish/wildlife costs follow the Federal Water Project Recreation Act; and costs for municipal/industrial/misc. water service, commercial power, and the reimbursable part of recreation/fish and wildlife must be repaid within 50 years with interest. The interest rate is set by the Treasury Secretary based on market yields for similar U.S. debt in the month before the fiscal year when costs occur, using a weighted average if needed. The Secretary may make contracts with project beneficiaries to collect reimbursable costs; those contracts will not be treated as new or changed contracts under section 390cc(a). While the work is built, the Secretary must consider cost-saving ideas from beneficiaries who consult and must give them regular updates on costs and progress.