§ 390b. — Development of water supplies for domestic, municipal, industrial, and other purposes.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC390b]
TITLE 43--PUBLIC LANDS
CHAPTER 12--RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 390b. Development of water supplies for domestic,
municipal, industrial, and other purposes
(a) Declaration of policy
It is declared to be the policy of the Congress to recognize the
primary responsibilities of the States and local interests in developing
water supplies for domestic, municipal, industrial, and other purposes
and that the Federal Government should participate and cooperate with
States and local interests in developing such water supplies in
connection with the construction, maintenance, and operation of Federal
navigation, flood control, irrigation, or multiple purpose projects.
(b) Storage in reservoir projects; agreements for payment of cost of
construction or modification of projects
In carrying out the policy set forth in this section, it is provided
that storage may be included in any reservoir project surveyed, planned,
constructed or to be planned, surveyed and/or constructed by the Corps
of Engineers or the Bureau of Reclamation to impound water for present
or anticipated future demand or need for municipal or industrial water,
and the reasonable value thereof may be taken into account in estimating
the economic value of the entire project: Provided, That the cost of any
construction or modification authorized under the provisions of this
section shall be determined on the basis that all authorized purposes
served by the project shall share equitably in the benefits of multiple
purpose construction, as determined by the Secretary of the Army or the
Secretary of the Interior, as the case may be: Provided further, That
before construction or modification of any project including water
supply provisions for present demand is initiated, State or local
interests shall agree to pay for the cost of such provisions in
accordance with the provisions of this section: And provided further,
That (1) for Corps of Engineers projects, not to exceed 30 percent of
the total estimated cost of any project may be allocated to anticipated
future demands, and, (2) for Bureau of Reclamation projects, not to
exceed 30 per centum of the total estimated cost of any project may be
allocated to anticipated future demands where State or local interests
give reasonable assurances, and there is reasonable evidence, that such
demands for the use of such storage will be made within a period of time
which will permit paying out the costs allocated to water supply within
the life of the project: And provided further, That for Corps of
Engineers projects, the Secretary of the Army may permit the full non-
Federal contribution to be made, without interest, during construction
of the project, or, with interest, over a period of not more than thirty
years from the date of completion, with repayment contracts providing
for recalculation of the interest rate at, five-year intervals, and for
Bureau of Reclamation projects, the entire amount of the construction
costs, including interest during construction, allocated to water supply
shall be repaid within the life of the project but in no event to exceed
fifty years after the project is first used for the storage of water for
water supply purposes, except that (1) no payment need be made with
respect to storage for future water supply until such supply is first
used, and (2) no interest shall be charged on such cost until such
supply is first used, but in no case shall the interest-free period
exceed ten years. For Corps of Engineers projects, all annual operation,
maintenance, and replacement costs for municipal and industrial water
supply storage under the provisions of this section shall be reimbursed
from State or local interests on an annual basis. For Corps of Engineers
projects, any repayment by a State or local interest shall be made with
interest at a rate to be determined by the Secretary of the Treasury,
taking into consideration the average market yields on outstanding
marketable obligations of the United States with remaining periods to
maturity comparable to the reimbursement period, during the month
preceding the fiscal year in which costs for the construction of the
project are first incurred (or, when a recalculation is made), plus a
premium of one-eighth of one percentage point for transaction costs. For
Bureau of Reclamation projects, the interest rate used for purposes of
computing interest during construction and interest on the unpaid
balance shall be determined by the Secretary of the Treasury, as of the
beginning of the fiscal year in which construction is initiated, on the
basis of the computed average interest rate payable by the Treasury upon
its outstanding marketable public obligations, which are neither due nor
callable for redemption for fifteen years from date of issue. The
provisions of this subsection insofar as they relate to the Bureau of
Reclamation and the Secretary of the Interior shall be alternative to
and not a substitute for the provisions of the Reclamation Projects Act
of 1939 (53 Stat. 1187) [43 U.S.C. 485 et seq.] relating to the same
subject.
(c) Application to other laws
The provisions of this section shall not be construed to modify the
provisions of section 701-1 of title 33 and section 390 of this title,
as amended and extended, or the provisions of sections 372 and 383 of
this title.
(d) Approval of Congress of modifications of reservoir projects
Modifications of a reservoir project heretofore authorized,
surveyed, planned, or constructed to include storage as provided in
subsection (b) of this section which would seriously affect the purposes
for which the project was authorized, surveyed, planned, or constructed,
or which would involve major structural or operational changes shall be
made only upon the approval of Congress as now provided by law.
(Pub. L. 85-500, title III, Sec. 301, July 3, 1958, 72 Stat. 319; Pub.
L. 87-88, Sec. 10, July 20, 1961, 75 Stat. 210; Pub. L. 99-662, title
IX, Sec. 932(a), Nov. 17, 1986, 100 Stat. 4196.)
References in Text
The Reclamation Projects Act of 1939, referred to in subsec. (b), is
act Aug. 4, 1939, ch. 418, 53 Stat. 1187, as amended, which is
classified principally to subchapter X (Sec. 485 et seq.) of this
chapter. For complete classification of this Act to the Code, see
section 485k of this title and Tables.
Amendments
1986--Subsec. (b). Pub. L. 99-662 inserted in third proviso ``(1)
for Corps of Engineers projects, not to exceed 30 percent of the total
estimated cost of any project may be allocated to anticipated future
demands, and, (2) for Bureau of Reclamation projects,'', inserted in
fourth proviso ``for Corps of Engineers projects, the Secretary of the
Army may permit the full non-Federal contribution to be made, without
interest, during construction of the project, or, with interest, over a
period of not more than thirty years from the date of completion, with
repayment contracts providing for recalculation of the interest rate at,
five-year intervals, and for Bureau of Reclamation projects,'', inserted
after first sentence ``For Corps of Engineers projects, all annual
operation, maintenance, and replacement costs for municipal and
industrial water supply storage under the provisions of this section
shall be reimbursed from State or local interests on an annual basis.
For Corps of Engineers projects, any repayment by a State or local
interest shall be made with interest at a rate to be determined by the
Secretary of the Treasury, taking into consideration the average market
yields on outstanding marketable obligations of the United States with
remaining periods to maturity comparable to the reimbursement period,
during the month preceding the fiscal year in which costs for the
construction of the project are first incurred (or, when a recalculation
is made), plus a premium of one-eighth of one percentage point for
transaction costs.'', and substituted ``For Bureau of Reclamation
projects, the interest rate used'' for ``The interest rate used''.
1961--Subsec. (b). Pub. L. 87-88 substituted provisions permitting
not more than 30 per centum of the total estimated cost of any project
to be allocated to anticipated future demands where State or local
interests give reasonable assurances, and there is reasonable evidence,
that such demands for the use of such storage will be made within a
period of time which will permit paying out the costs allocated to water
supply within the life of the project for provisions which permitted not
more than 30 per centum of the total estimated cost of any project to be
allocated to anticipated future demands where States or local interests
give reasonable assurance that they will contract for the use of storage
for anticipated future demands within a period of time which will permit
paying out the costs allocated to water supply within the life of the
project.
Short Title of 1961 Amendment
Section 11 of Pub. L. 87-88 provided that: ``This Act [amending this
section, and sections 1151, 1153 to 1155, 1157 to 1160, 1171 to 1173 of
Title 33, Navigation and Navigable Waters, and enacting provisions set
out as notes under sections 1151, 1157, and 1159 of Title 33] may be
cited as the `Federal Water Pollution Control Act Amendments of 1961'.''
Short Title
Section 302 of Pub. L. 85-500 provided that: ``Title III of this Act
[enacting this section] may be cited as the `Water Supply Act of
1958'.''
Amendment of Contracts Existing Prior to November 17, 1986
Section 932(b) of Pub. L. 99-662 provided that: ``Nothing in this
section [amending this section] shall be deemed to amend or require
amendment of any valid contract entered into pursuant to the Water
Supply Act of 1958 [this section], or Federal reclamation law [see 43
U.S.C. 371 and notes] and approved by the Secretary of the Army or the
Secretary of the Interior prior to the date of enactment of this Act
[Nov. 17, 1986].''
Section Referred to in Other Sections
This section is referred to in section 390jj of this title; title 42
section 1962d-5b.
