[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC422e]
TITLE 43--PUBLIC LANDS
CHAPTER 12--RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT
SUBCHAPTER IV--CONSTRUCTION OF SMALL PROJECTS
Sec. 422e. Contract requirements
Upon approval of any project proposal by the Secretary under the
provisions of section 422d of this title, he may negotiate a contract
which shall set out, among other things--
(a) the maximum amount of any loan to be made to the
organization and the time and method of making the same available to
the organization. Said loan shall not exceed the lesser of (1) two-
thirds of the maximum allowable estimated total project cost as
determined by section 422b(f) of this title, or (2) the estimated
total cost of the project minus the contribution of the local
organization as provided in section 422d(b) of this title and the
amount of the grant approved;
(b) the maximum amount of any grant to be accorded the
organization. Said grant shall not exceed the sum of the following:
(1) the costs of investigations, surveys, and engineering and other
services necessary to the preparation of proposals and plans for the
project allocable to fish and wildlife enhancement or public
recreation; (2) one-half the costs of acquiring lands or interests
therein to serve exclusively the purposes of fish and wildlife
enhancement or public recreation, plus the costs of acquiring joint
use lands and interests therein properly allocable to fish and
wildlife enhancement and public recreation; (3) one-half the costs
of basic public outdoor recreation facilities or facilities serving
fish and wildlife enhancement purposes exclusively; (4) one-half the
costs of construction of joint use facilities properly allocable to
fish and wildlife enhancement or public recreation; (5) that portion
of the estimated cost of constructing the project which, if it were
constructed as a Federal reclamation project, would be properly
allocable to functions, other than recreation and fish and wildlife
enhancement and flood control, which are nonreimbursable under
general provisions of law applicable to such projects; and (6) that
portion of the estimated cost of constructing the project which is
allocable to flood control and which would be nonreimbursable under
general provisions of law applicable to projects constructed by the
Secretary of the Army.\1\
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\1\ So in original. The period probably should be a semicolon.
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(c) a plan of repayment by the organization of (1) the sums lent
to it in not more than forty years from the date when the principal
benefits of the project first become available; (2) interest, as
determined by the Secretary of the Treasury, as of the beginning of
the fiscal year in which the contract is executed, on the basis of
the average market yields on outstanding marketable obligations of
the United States with remaining periods of maturity comparable to
the applicable reimbursement period of the project, adjusted to the
nearest one-eighth of 1 percent on the unamortized balance of any
portion of the loan--
(A) which is attributable to furnishing irrigation benefits
in each particular year to land held in private ownership by a
qualified recipient or by a limited recipient, as such terms are
defined in section 390bb of this title, in excess of three
hundred and twenty irrigable acres; or,
(B) which is allocated to domestic, industrial, or municipal
water supply, commercial power, fish and wildlife enhancement,
or public recreation except that portion of such allocation
attributable to furnishing benefits to a facility operated by an
agency of the United States, which portion shall bear no
interest.\1\
(d) provision for operation of the project, if a grant
predicated upon its performance of nonreimbursable functions is
made, in accordance with regulations with respect thereto prescribed
by the head of the Federal department or agency primarily concerned
with those functions and, in the event of noncompliance with such
regulations, for operation by the United States or for repayment to
the United States of the amount of any such grant;
(e) such provisions as the Secretary shall deem necessary or
proper to provide assurance of and security for prompt repayment of
the loan and interest as aforesaid. The liability of the United
States under any contract entered into pursuant to this subchapter
shall be contingent upon the availability of appropriations to carry
out the same, and every such contract shall so recite; and
(f) provisions conforming to the preference requirements
contained in the proviso to section 485h(c) of this title, if the
project produces electric power for sale.
(Aug. 6, 1956, ch. 972, Sec. 5, 70 Stat. 1046; Pub. L. 85-47, Sec. 1(c),
June 5, 1957, 71 Stat. 49; Pub. L. 89-553, Sec. 1(4), Sept. 2, 1966, 80
Stat. 376; Pub. L. 92-167, Sec. 1(3)-(6), Nov. 24, 1971, 85 Stat. 488;
Pub. L. 94-181, Sec. 1(f), Dec. 27, 1975, 89 Stat. 1050; Pub. L. 96-336,
Sec. 8(b), Sept. 4, 1980, 94 Stat. 1065; Pub. L. 97-293, title II,
Sec. 223, Oct. 12, 1982, 96 Stat. 1272; Pub. L. 99-546, title III,
Secs. 306, 307, Oct. 27, 1986, 100 Stat. 3054.)
Amendments
1986--Subsec. (b). Pub. L. 99-546, Sec. 306, struck out ``and''
before ``(5)'' and substituted ``and flood control, which are
nonreimbursable under general provisions of law applicable to such
projects; and (6) that portion of the estimated cost of constructing the
project which is allocable to flood control and which would be
nonreimbursable under general provisions of law applicable to projects
constructed by the Secretary of the Army.'' for ``, which are
nonreimbursable under general provisions of law applicable to such
projects: Provided, That the cost of constructing the project as used in
this subsection shall be exclusive of the cost of lands and interests in
land;''.
Subsec. (c)(1). Pub. L. 99-546, Sec. 307(a), substituted ``forty''
for ``fifty''.
Subsec. (c)(2). Pub. L. 99-546, Sec. 307(b), amended cl. (2)
generally. Prior to amendment, cl. (2) read as follows: ``interest, as
determined by the Secretary of the Treasury, as of the beginning of the
fiscal year in which the contract is executed, 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, and by
adjusting such average rate to the nearest one-eighth of 1 per centum,
on that portion of the loan which is attributable to furnishing
irrigation benefits in each particular year to land held in private
ownership by a qualified recipient, as such term is defined in section
390bb of this title, in excess of nine hundred and sixty irrigable
acres, or by a limited recipient, as such term is defined in section
390bb of this title, in excess of three hundred and twenty irrigable
acres; and''.
Subsec. (c)(3). Pub. L. 99-546, Sec. 307(c), struck out cl. (3)
which read as follows: ``in the case of any project involving an
allocation to domestic, industrial, or municipal water supply,
commercial power, fish and wildlife enhancement, or public recreation,
interest on the unamortized balance of an appropriate portion of the
loan at a rate as determined in (2) above; Except that portion of said
allocation attributable to furnishing benefits to a facility operated by
an agency of the United States, which portion shall bear no interest;''.
1982--Subsec. (c)(2). Pub. L. 97-293 substituted ``by a qualified
recipient, as such term is defined in section 390bb of this title, in
excess of nine hundred and sixty irrigable acres, or by a limited
recipient, as such term is defined in section 390bb of this title, in
excess of three hundred and twenty irrigable acres'' for ``by any one
owner in excess of one hundred and sixty irrigable acres''.
1980--Subsec. (c). Pub. L. 96-336 inserted ``Except that portion of
said allocation attributable to furnishing benefits to a facility
operated by an agency of the United States, which portion shall bear no
interest;'' at end of subsec. (c).
1975--Subsec. (a)(1). Pub. L. 94-181 substituted ``two-thirds of the
maximum allowable estimated total project cost as determined by section
422b(f) of this title,'' for ``$10,000,000''.
1971--Subsec. (a)(1). Pub. L. 92-167, Sec. 1(3), substituted
``$10,000,000'' for ``$6,500,000''.
Subsec. (b)(2). Pub. L. 92-167, Sec. 1(4), substituted provision for
inclusion of one-half of land acquisition costs to serve exclusively the
purposes of fish and wildlife enhancement and public recreation, for
prior inclusion of such costs for a reservoir or other area to be
operated for fish and wildlife enhancement and public recreation
purposes and provided for inclusion of costs of acquiring joint use
lands and interests therein properly allocable to fish and wildlife
enhancement and public recreation.
Subsec. (b)(5). Pub. L. 92-167, Sec. 1(5), inserted proviso
excluding from cost of constructing projects, as used in this
subsection, cost of lands and interests in land.
Subsec. (c)(3). Pub. L. 92-167, Sec. 1(6), required reimbursable
fish and wildlife and recreation costs to be repaid with interest at
rate determined by formula set forth in subsec. (c)(2) of this section.
1966--Pub. L. 89-553 substituted the lesser of $6,500,000 or the
estimated total cost of the project minus the contribution of the local
organization as provided in section 422d(b) of this title and the amount
of the grant for the portion of the estimated cost of constructing the
project which, if it were being constructed as a Federal reclamation
project, would be properly allocable to reimbursable functions under
general provisions of law applicable to such projects as the maximum
amount of the loan, struck out the time and method of paying a grant to
an organization from the list of con
