43 U.S.C. § 510b: Extraordinary operation and…

Summary

The Secretary may do urgent or unusual operation and maintenance work on a project facility when it is needed to keep the facility safe. If the work is on a reserved project, the costs are charged to the project and must be paid back with interest within 50 years starting the year the work is mostly done. If the work is on a transferred project, the Secretary can pay the costs up front and make a 50-year repayment contract with the project’s beneficiaries. Those repayment contracts are not treated as new or changed contracts under section 390cc(a). The interest rate is set by the Secretary of the Treasury at the start of the fiscal year when the work begins. The rate is based on average market yields for U.S. government bonds with similar maturities and is rounded to the nearest eighth of a percent on any unpaid balance. If immediate danger exists, the Secretary or the transferred works operator must do emergency work to prevent harm to people or property. The Secretary may advance money for emergency work and will ask to be repaid after getting a written promise to negotiate a repayment contract. For certain inspected facilities, the Secretary may cover 35 percent of the transferred operator’s share of emergency costs with nonreimbursable Federal funds; the rest must be repaid under the rules above. The Aging Infrastructure Account is set up in the Treasury to pay for eligible major, non-recurring maintenance projects and to allow extended repayment. It gets money from specific appropriations under section 510d and from repayments. Starting in fiscal year 2022 the Secretary will accept yearly applications, using guidelines issued within 60 days after December 27, 2020, and will report chosen projects and account details to Congress within 90 days after each application period ends. Congress can direct different allocations, and earlier contracts or funding before December 27, 2020 are not affected.

Title 43, §510b

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(a)In general

The Secretary or the transferred works operating entity may carry out, in accordance with subsection (b) and consistent with existing transfer contracts, any extraordinary operation and maintenance work on a project facility that the Secretary determines to be reasonably required to preserve the structural safety of the project facility.

(b)Reimbursement of costs arising from extraordinary operation and maintenance work

(1)Treatment of costs

For reserved works, costs incurred by the Secretary in conducting extraordinary operation and maintenance work will be allocated to the authorized reimbursable purposes of the project and shall be repaid within 50 years, with interest, from the year in which work undertaken pursuant to this subchapter is substantially complete.

(2)Authority of Secretary

For transferred works, the Secretary is authorized to advance the costs incurred by the transferred works operating entity in conducting extraordinary operation and maintenance work and negotiate appropriate 50-year repayment contracts with project beneficiaries providing for the return of reimbursable costs, with interest, under this subsection: Provided, however, That no contract entered into pursuant to this subchapter shall be deemed to be a new or amended contract for the purposes of section 390cc(a) of this title.

(3)Determination of interest rate

The interest rate used for computing interest on work in progress and interest on the unpaid balance of the reimbursable costs of extraordinary operation and maintenance work authorized by this subchapter shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which extraordinary operation and maintenance work is commenced, on the basis of average market yields on outstanding marketable obligations of the United States with the remaining periods of maturity comparable to the applicable reimbursement period of the project, adjusted to the nearest ⅛ of 1 percent on the unamortized balance of any portion of the loan.

(c)Emergency extraordinary operation and maintenance work

(1)In general

The Secretary or the transferred works operating entity shall carry out any emergency extraordinary operation and maintenance work on a project facility that the Secretary determines to be necessary to minimize the risk of imminent harm to public health or safety, or property.

(2)Reimbursement

The Secretary may advance funds for emergency extraordinary operation and maintenance work and shall seek reimbursement from the transferred works operating entity or benefitting entity upon receiving a written assurance from the governing body of such entity that it will negotiate a contract pursuant to this section for repayment of costs incurred by the Secretary in undertaking such work.

(3)Funding

If the Secretary determines that a project facility inspected and maintained pursuant to the guidelines and criteria set forth in section 510a(a) of this title requires extraordinary operation and maintenance pursuant to paragraph (1), the Secretary may provide Federal funds on a nonreimbursable basis sufficient to cover 35 percent of the cost of the extraordinary operation and maintenance allocable to the transferred works operating entity, which is needed to minimize the risk of imminent harm. The remaining share of the Federal funds advanced by the Secretary for such work shall be repaid under subsection (b).

(d)Aging Infrastructure Account

(1)Establishment

There is established in the general fund of the Treasury a special account, to be known as the “Aging Infrastructure Account” (referred to in this subsection as the “Account”), to provide funds to, and provide for the extended repayment of the funds by, a transferred works operating entity or project beneficiary responsible for repayment of reimbursable costs for the conduct of extraordinary operation and maintenance work at a project facility, which shall consist of— (A)

(B)any amounts deposited in the Account under paragraph (3)(B).

(2)Expenditures

Subject to paragraphs (3) and (6), the Secretary may expend amounts in the Account to fund and provide for extended repayment of the funds for eligible projects identified in a report submitted under paragraph (5)(B).

(3)Repayment contract

(A)In general

The Secretary may not expend amounts under paragraph (2) with respect to an eligible project described in that paragraph unless the transferred works operating entity or project beneficiary responsible for repayment of reimbursable costs has entered into a contract to repay the amounts under subsection (b)(2).

(B)Deposit of repaid funds

Amounts repaid by a transferred works operating entity or project beneficiary responsible for repayment of reimbursable costs receiving funds under a repayment contract entered into under this subsection shall be deposited in the Account and shall be available to the Secretary for expenditure, subject to paragraph (6), in accordance with this subsection, and without further appropriation.

(4)Application for funding

(A)In general

Beginning with fiscal year 2022, not less than once per fiscal year, the Secretary shall accept, during an application period established by the Secretary, applications from transferred works operating entities or project beneficiaries responsible for payment of reimbursable costs for funds and extended repayment for eligible projects.

(B)Eligible project

A project eligible for funding and extended repayment under this subsection is a project that—

(i)qualifies as an extraordinary operation and maintenance work under this section;

(ii)is for the major, non-recurring maintenance of a mission-critical asset; and

(iii)is not eligible to be carried out or funded under the repayment provisions of section 508(c) of this title.

(C)Guidelines for applications

Not later than 60 days after December 27, 2020, the Secretary shall issue guidelines describing the information required to be provided in an application for funds and extended repayment under this subsection that require, at a minimum—

(i)a description of the project for which the funds are requested;

(ii)the amount of funds requested;

(iii)the repayment period requested by the transferred works operating entity or project beneficiary responsible for repayment of reimbursable costs;

(iv)alternative non-Federal funding options that have been evaluated;

(v)the financial justification for requesting an extended repayment period; and

(vi)the financial records of the transferred works operating entity or project beneficiary responsible for repayment of reimbursable costs.

(D)Review by the Secretary

The Secretary shall review each application submitted under subparagraph (A)—

(i)to determine whether the project is eligible for funds and an extended repayment period under this subsection;

(ii)to determine if the project has been identified by the Bureau of Reclamation as part of the major rehabilitation and replacement of a project facility; and

(iii)to conduct a financial analysis of—

(I)the project; and

(II)repayment capability of the transferred works operating entity or project beneficiary responsible for repayment of reimbursable costs.

(5)Report

Not later than 90 days after the date on which an application period closes under paragraph (4)(A), the Secretary shall submit to the Committees on Energy and Natural Resources and Appropriations of the Senate and the Committees on Natural Resources and Appropriations of the House of Representatives a report that—

(A)describes the results of the Secretary’s review of each application under paragraph (4)(D), including a determination of whether the project is eligible;

(B)identifies each project eligible for funds and extended repayment under this subsection;

(C)with respect to each eligible project identified under subparagraph (B), includes—

(i)a description of—

(I)the eligible project;

(II)the anticipated cost and duration of the eligible project;

(III)any remaining engineering or environmental compliance that is required before the eligible project commences;

(IV)any recommendations the Secretary may have concerning the plan or design of the project; and

(V)any conditions the Secretary may require for construction of the project;

(ii)an analysis of—

(I)the repayment period proposed in the application; and

(II)if the Secretary recommends a minimum necessary repayment period that is different than the repayment period proposed in the application, the minimum necessary repayment period recommended by the Secretary; and

(iii)an analysis of alternative non-Federal funding options;

(D)describes the allocation of funds from deposits into the Account under paragraph (3)(B); and

(E)describes the balance of funds in the Account as of the date of the report.

(6)Alternative allocation

(A)In general

Appropriations Acts may provide for alternate allocation of amounts reported pursuant to paragraph (5)(D) that are made available under this subsection.

(B)Allocation by Secretary

(i)No alternate allocations

If Congress has not enacted legislation establishing alternate allocations by the date on which the Act making full-year appropriations for energy and water development and related agencies for the applicable fiscal year is enacted into law, amounts made available under paragraph (1) shall be allocated by the Secretary.

(ii)Insufficient alternate allocations

If Congress enacts legislation establishing alternate allocations for amounts made available under paragraph (1) that are less than the full amount appropriated under that paragraph, the difference between the amount appropriated and the alternate allocation shall be allocated by the Secretary.

(7)Effect of subsection

Nothing in this subsection affects—

(A)any funding provided, or contracts entered into, under subsection (a) before December 27, 2020; or

(B)the use of funds otherwise made available to the Secretary to carry out subsection (a).

Notes & Related Subsidiaries

Editorial Notes

Amendments

2020—Subsec. (d). Pub. L. 116–260 added subsec. (d).

Statutory Notes and Related Subsidiaries

Repayment into the Aging Infrastructure Account Pub. L. 119–74, div. B, title II, § 208, Jan. 23, 2026, 140 Stat. 74, provided that: “In this fiscal year and each fiscal year thereafter, notwithstanding the Act of May 9, 1938, (43 U.S.C. 392a), all monies received by the United States in connection with the repayment or reimbursement of costs for all projects, including power, financed in whole or in part with money from the Aging Infrastructure Account created pursuant to section 9603(d) of the Omnibus Public Land Management Act of 2009 (43 U.S.C. 510b(d)) shall be repaid and deposited to that account.”

§510b Extraordinary Operation and Maintenance Work Performed by the Secretary

Summary

Title 43, §510b

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Citations & Metadata