PRIA, Government Policy, Made Personal

Summary

The Secretary must look into repayment problems for any existing project unit when a contract under sections 485b or 485c is not practical. If needed, the Secretary can negotiate a new contract that fixes those repayment problems in a fair way and fits the purpose of this part of the law. For projects, project divisions, development units, or supplemental works that were under construction on August 4, 1939, or already had appropriations but no repayment contract, cost allocations can follow section 485h and the Secretary may negotiate a repayment contract either under the authority above or as close as possible to the rules in section 485h(d) or 485h(e). If most of the lands are public lands, the Secretary may set a development period for each irrigation block of up to ten years starting with the first year water is delivered. If a development period is set before a contract is signed, the contract must be signed before water is delivered after that period ends. During a development period, water can be sold only on a toll-charge basis at a yearly rate per annum per acre-foot set each year and paid in advance. While a repayment contract is being negotiated for other such projects, water may be supplied for up to five years from August 4, 1939, on the same toll-charge basis. Any tolls collected that the Secretary finds are more than operation and maintenance costs during the toll period will be credited to the project’s construction cost as the Secretary decides. The Secretary must report proposed contracts made under the authority above to Congress from time to time. The United States can sign any such contract only after Congress approves it by law. Once Congress has approved a contract, it can be changed later by agreement of the parties without more Congressional approval if the changes fall within the Secretary’s authority given before or after April 24, 1945. Changes that extend the time allowed to repay construction charges beyond what this subchapter permits are effective only if Congress approves them.

Title 43, §485f

Public Lands, Source: USLM XML via OLRC

(a)Existing project contract unit

The Secretary is authorized and directed to investigate the repayment problems of any existing project contract unit in connection with which, in his judgment, a contract under section 485b or 485c of this title would not be practicable nor provide an economically sound adjustment, and to negotiate a contract which, in his judgment, both would provide fair and equitable treatment of the repayment problems involved and would be in keeping with the general purpose of this subchapter.

(b)New projects or projects under construction; public lands; development periods

For any project, division of a project, development unit of a project, or supplemental works on a project, under construction on August 4, 1939, or for which appropriations had been made, and in connection with which a repayment contract had not been executed, allocations of costs may be made in accordance with the provisions of section 485h of this title and a repayment contract may be negotiated, in the discretion of the Secretary, (1) pursuant to the authority of subsection (a) of this section or (2) in accordance, as near as may be, with the provisions in section 485h(d) or 485h(e) of this title. In connection with any such project, division, or development unit, on which the majority of the lands involved are public lands of the United States, the Secretary, prior to entering into a repayment contract, may fix a development period for each irrigation block, if any, of not to exceed ten years from and including the first year in which water is delivered for the lands in said block: Provided, That in the event a development period is fixed prior to execution of a repayment contract, execution thereof shall be a condition precedent to delivery of water after the close of the development period. During any such development period water shall be delivered to the lands in the irrigation block involved only on a toll-charge basis, at a charge per annum per acre-foot to be fixed by the Secretary each year and to be collected in advance of delivery of water. Pending negotiation and execution of a repayment contract for any other such project, division, or development unit, water may be delivered for a period of not more than five years from August 4, 1939, on the same toll-charge basis. Any such toll charges collected and which the Secretary determines to be in excess of the cost of operation and maintenance during the toll-charge period shall be credited to the construction cost of the project in the manner determined by the Secretary.

(c)Report of proposed contracts to Congress; approval; amendment after approval

The Secretary from time to time shall report to the Congress on any proposed contracts negotiated pursuant to the authority of subsection (a) or (b)(1) of this section, and he may execute any such contract on behalf of the United States only after approval thereof has been given by Act of Congress. Contracts, so approved, however, may be amended from time to time by mutual agreement and without further approval by Congress if such amendments are within the scope of authority granted prior to or after April 24, 1945, to the Secretary under any Act, except that amendments providing for repayment of construction charges in a period of years longer than authorized by this subchapter, as it may be amended, shall be effective only when approved by Congress.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 485c of this title, referred to in subsec. (a), was repealed by Pub. L. 85–611, § 3, Aug. 8, 1958, 72 Stat. 543.

Amendments

1945—Subsec. (c). Act Apr. 24, 1945, added second sentence. Extension of Secretary’s Authority To Enter Into Amendatory ContractsSecretary’s authority extended through Dec. 31, 1960, see section 485b–1 of this title.

§485f Negotiation of Equitable Contracts by Secretary