§485h–1 Administration of Repayment Contracts and Long-term Contracts to Furnish Water; Renewal and Conversion; Credit for Payments; Right to Available Water Supply; Rates; Construction Component

Summary

The Secretary of the Interior must put certain terms into long-term and repayment water contracts. If a contract partner asks, the Secretary must allow a renewal option with agreed terms that can raise or lower charges to match changes in building, operating, or repair costs and the partner’s ability to pay. If an organization asks, the contract can be changed into a repayment contract when, after crediting amounts already returned, the remaining construction cost can likely be paid off under the repayment schedule. Each year the Secretary must credit any early payments that are more than the partner’s fair share of operation and maintenance costs. The Secretary must set up credits made before July 2, 1956 as soon as feasible. When credits equal the repayment amount the partner would have paid under a repayment contract, the construction charge must stop and rates lowered. Contracts must give the partner first priority to a stated share of the project’s water for use on their lands, and that right becomes permanent when repayment is finished (subject to future operation and maintenance costs). Contracts may require advance payment of rates on an annual, semiannual, bimonthly, or monthly schedule. Until the partner’s share of construction costs is paid off, rates must include a reasonable construction charge.