33 USC 3907 - Determination of eligibility and project selection

U.S Code last checked for updates: May 03, 2024

§ 3907.

Determination of eligibility and project selection

(a)

Eligibility requirements

To be eligible to receive financial assistance under this chapter, a project shall meet the following criteria, as determined by the Secretary or Administrator, as applicable:

(1)

Creditworthiness

(A)

In general

(B)

Considerations

In determining the creditworthiness of a project and obligor, the Secretary or the Administrator, as applicable, shall take into consideration relevant factors, including—

(i)

the terms, conditions, financial structure, and security features of the proposed financing;

(ii)

the dedicated revenue sources that will secure or fund the project obligations;

(iii)

the financial assumptions upon which the project is based; and

(iv)

the financial soundness and credit history of the obligor.

(C)

Security features

(D)

Rating opinion letters

(i)

Preliminary rating opinion letter

(ii)

Final rating opinion letters

(E)

Special rule for certain combined projects

The Administrator shall develop a credit evaluation process for a Federal credit instrument provided to—

(i)

a State infrastructure financing authority for a project under section 3905(9) of this title, which may include requiring the provision of a final rating opinion letter from at least one rating agency; or

(ii)

an entity for a project under section 3905(10) of this title, which may include requiring the provision of a final rating opinion letter from at least two rating agencies.

(2)

Eligible project costs

(A)

In general

(B)

Small community water infrastructure projects

(3)

Dedicated revenue sources

(4)

Public sponsorship of private entities

(A)

In general

(B)

Public sponsorship

(5)

Use of existing financing mechanisms

(A)

Notification

(B)

Determination

If, not later than 60 days after the date of receipt of a notification under subparagraph (A), a State infrastructure financing authority notifies the Administrator that the State infrastructure financing authority intends to commit funds to the project in an amount that is equal to or greater than the amount requested under the application, the Administrator may not provide any financial assistance for that project under this chapter unless—

(i)

by the date that is 180 days after the date of receipt of a notification under subparagraph (A), the State infrastructure financing authority fails to enter into an assistance agreement to provide funds for the project; or

(ii)

the financial assistance to be provided by the State infrastructure financing authority will be at rates and terms that are less favorable than the rates and terms for financial assistance provided under this chapter.

(6)

Operation and maintenance plan

(A)

In general

(B)

Special rule

(b)

Selection criteria

(1)

Establishment

(2)

Criteria

The selection criteria shall include the following:

(A)

The extent to which the project is nationally or regionally significant, with respect to the generation of economic and public benefits, such as—

(i)

the reduction of flood risk;

(ii)

the improvement of water quality and quantity, including aquifer recharge;

(iii)

the protection of drinking water, including source water protection; and

(iv)

the support of international commerce.

(B)

The extent to which the project financing plan includes public or private financing in addition to assistance under this chapter.

(C)

The likelihood that assistance under this chapter would enable the project to proceed at an earlier date than the project would otherwise be able to proceed.

(D)

The extent to which the project uses new or innovative approaches.

(E)

The amount of budget authority required to fund the Federal credit instrument made available under this chapter.

(F)

The extent to which the project—

(i)

protects against extreme weather events, such as floods or hurricanes; or

(ii)

helps maintain or protect the environment.

(G)

The extent to which a project serves regions with significant energy exploration, development, or production areas.

(H)

The extent to which a project serves regions with significant water resource challenges, including the need to address—

(i)

water quality concerns in areas of regional, national, or international significance;

(ii)

water quantity concerns related to groundwater, surface water, or other water sources;

(iii)

significant flood risk;

(iv)

water resource challenges identified in existing regional, State, or multistate agreements; or

(v)

water resources with exceptional recreational value or ecological importance.

(I)

The extent to which the project addresses identified municipal, State, or regional priorities.

(J)

The readiness of the project to proceed toward development, including a demonstration by the obligor that there is a reasonable expectation that the contracting process for construction of the project can commence by not later than 90 days after the date on which a Federal credit instrument is obligated for the project under this chapter.

(K)

The extent to which assistance under this chapter reduces the contribution of Federal assistance to the project.

(3)

Special rule for certain combined projects

(c)

Federal requirements

(Pub. L. 113–121, title V, § 5028, June 10, 2014, 128 Stat. 1335; Pub. L. 114–94, div. A, title I, § 1445, Dec. 4, 2015, 129 Stat. 1437; Pub. L. 114–322, title IV, § 5008(b)(2)(D), Dec. 16, 2016, 130 Stat. 1897; Pub. L. 115–270, title IV, § 4201(a)(2), Oct. 23, 2018, 132 Stat. 3877; Pub. L. 117–58, div. E, title II, § 50214, Nov. 15, 2021, 135 Stat. 1173.)

cite as: 33 USC 3907