Title 43 — Public LandsRelease 119-73not60

§2422 Project Eligibility

Title 43 › Chapter 42— RURAL WATER SUPPLY › Subchapter II— TWENTY-FIRST CENTURY WATER WORKS › § 2422

Last updated Apr 5, 2026|Official source

Summary

The Secretary must write and publish rules in the Federal Register that say which projects can get financial help under section 2423. The rules must include that a lender applies, that the project is creditworthy with proper security for repayment, that the non-Federal borrower can repay financing from user fees or dedicated revenue, that the borrower can pay operations, maintenance, and replacement costs, and any other conditions the Secretary finds needed. The Secretary can waive any of these rules if they are duplicated or no longer needed because the United States already acted. Projects approved for construction under Federal reclamation laws before December 22, 2006 are eligible if they meet the rules. Rural water supply projects found feasible under section 2405 are eligible for a loan guarantee under section 2423.

Full Legal Text

Title 43, §2422

Public Lands — Source: USLM XML via OLRC

(a)(1)The Secretary shall develop and publish in the Federal Register criteria for determining the eligibility of a project for financial assistance under section 2423 of this title.

(2)Eligibility criteria shall include—

(A)submission of an application by the lender to the Secretary;

(B)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;

(C)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;

(D)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

(E)such other criteria as the Secretary determines to be appropriate.

(b)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.

(c)A project that was authorized for construction under Federal reclamation laws prior to December 22, 2006, shall be eligible for assistance under this subchapter, subject to the criteria established by the Secretary under subsection (a).

(d)A rural water supply project that is determined to be feasible under section 2405 of this title is eligible for a loan guarantee under section 2423 of this title.

Reference

Citations & Metadata

Citation

43 U.S.C. § 2422

Title 43 — Public Lands

Last Updated

Apr 5, 2026

Release point: 119-73not60