Title 43, Public LandsRelease 119-110

§2422 Project Eligibility

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

Last updated Sep 22, 2026|Official source

Summary

The Secretary must publish rules in the Federal Register that say when a project can get financial assistance under section 2423. The rules must require a lender to apply, show the project is creditworthy with proper loan security, and show the non‑Federal borrower can repay the loan from user fees or other dedicated revenue and can pay operation, maintenance, and replacement costs. The Secretary may add other appropriate criteria. The Secretary can waive any criteria that are duplicate or no longer needed because of U.S. actions. Projects authorized for construction under Federal reclamation laws before December 22, 2006 are eligible under these rules. A rural water supply project found feasible under section 2405 is eligible for a loan guarantee under section 2423.

Full Legal Text

Title 43, §2422

Public Lands, Source: USLM XML via OLRC

(a)Eligibility criteria

(1)In general

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)Inclusions

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)Waiver

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)Projects previously authorized

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)Criteria for rural water supply projects

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

Sep 22, 2026

Release point: 119-110