
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[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.
