Title 43 › CHAPTER 12 — RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT › SUBCHAPTER IV — CONSTRUCTION OF SMALL PROJECTS › § 422d
Any proposal to build a reclamation project that has not already been approved must include a detailed plan and cost estimate like the ones used for federal projects. The proposal must be sent to the State(s) in the drainage basin for review, or only to the State(s) where the project is located if it is only a rehabilitation. It must show how capital costs will be divided by function so single-purpose facilities pay for that purpose and shared facilities split costs fairly. Costs to avoid harm to fish and wildlife count as project costs. The proposing organization must show it has or can get the lands and water rights needed (except certain federal lands) and that it can pay part of the project cost without federal loans or grants. The Secretary must require the organization to provide at least 25 percent of the allowable estimated cost, but may lower that amount if the organization cannot get reasonable financing, never below 10 percent. The Secretary will accept lender letters as proof. Credit toward the contribution includes costs of studies, surveys, engineering, lands and rights-of-way, and the $5,000 fee. Grants under section 422e(b) are not counted in the allowable estimated cost. When the Secretary and the State Governor find the project financially feasible and an acceptable risk, the Secretary sends those findings and the proposal to Congress. The proposal must certify an adequate soil survey or proven irrigability and must investigate any toxic irrigation return flows. The Secretary may reserve needed federal lands for up to two years unless the repayment contract is signed. The Secretary may later raise the requested loan or grant up to the legal maximum to cover price increases. No federal money for the project can be approved until 60 calendar days after the report is sent to Congress, and then only if neither the House Committee on Natural Resources nor the Senate Committee on Energy and Natural Resources disapproves by committee resolution during that period. That 60-day rule does not apply to proposals under section 422f. The Secretary must consider financial feasibility, emergency, or urgent need. All project works and facilities remain under the local contracting organization’s control under the repayment contract.
Full Legal Text
Public Lands, Source: USLM XML via OLRC
Legislative History
Reference
Citation
43 U.S.C. § 422d
Title 43, Public Lands
Last Updated
Sep 22, 2026
Release point: 119-110