§ 3856 TITLE 33—NAVIGATION AND NAVIGABLE WATERS Page 814

Oct. 15, 2010, 124 Stat. 3023, which enacted this chapter

and repealed chapter 37 (§2401 et seq.) of this title. For

complete classification of title X to the Code, see

Tables.

§ 3856. Referrals for appropriate action by foreign country

Notwithstanding sections 3851, 3852, 3853, and

3855 of this title, if a violation of the Convention

is committed by a vessel registered in or of the

nationality of a country that is a party to the

Convention, or by a vessel operated under the

authority of a country that is a party to the

Convention, the Secretary, acting in coordination with the Secretary of State, may refer the

matter to the government of the country of the

vessel’s registry or nationality, or under whose

authority the vessel is operating, for appropriate action, rather than taking the actions

otherwise required or authorized by this subchapter.

(Pub. L. 111–281, title X, §1046, Oct. 15, 2010, 124

Stat. 3031.)

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle D (§§1041–1048) of

title X of Pub. L. 111–281, Oct. 15, 2010, 124 Stat. 3029,

which enacted this subchapter and repealed chapter 37

(§2401 et seq.) of this title. For complete classification

of subtitle D to the Code, see Tables.

§ 3857. Remedies not affected

(a) In general

Nothing in this chapter limits, denies,

amends, modifies, or repeals any other remedy

available to the United States.

(b) Relationship to State and local law

Nothing in this chapter limits, denies,

amends, modifies, or repeals any rights under

existing law, of any State, territory, or possession of the United States, or any political subdivision thereof, to regulate any antifouling system. Compliance with the requirements of a

State, territory, or possession of the United

States, or political subdivision thereof related

to antifouling paint or any other antifouling

system does not relieve any person of the obligation to comply with this chapter.

(Pub. L. 111–281, title X, §1047, Oct. 15, 2010, 124

Stat. 3031.)

REFERENCES IN TEXT

This chapter, referred to in text, was in the original

‘‘this title’’, meaning title X of Pub. L. 111–281, Oct. 15,

2010, 124 Stat. 3023, which enacted this chapter and repealed chapter 37 (§2401 et seq.) of this title. For complete classification of title X to the Code, see Tables.

CHAPTER 52—WATER INFRASTRUCTURE

FINANCE AND INNOVATION

Sec.

3901. Definitions.

3902. Authority to provide assistance.

3903. Applications.

3904. Eligible entities.

3905. Projects eligible for assistance.

3906. Activities eligible for assistance.

3907. Determination of eligibility and project selection.

3908. Secured loans.

Sec.

3909. Program administration.

3910. State, tribal, and local permits.

3911. Regulations.

3912. Funding.

3913. Reports on pilot program implementation.

3914. Requirements.

§ 3901. Definitions

In this chapter:

(1) Administrator

The term ‘‘Administrator’’ means the Administrator of the Environmental Protection

Agency.

(2) Community water system

The term ‘‘community water system’’ has

the meaning given the term in section 300f of

title 42.

(3) Federal credit instrument

The term ‘‘Federal credit instrument’’

means a secured loan or loan guarantee authorized to be made available under this chapter with respect to a project.

(4) Investment-grade rating

The term ‘‘investment-grade rating’’ means

a rating of BBB minus, Baa3, bbb minus, BBB

(low), or higher assigned by a rating agency to

project obligations.

(5) Lender

(A) In general

The term ‘‘lender’’ means any non-Federal

qualified institutional buyer (as defined in

section 230.144A(a) of title 17, Code of Federal Regulations (or a successor regulation),

known as Rule 144A(a) of the Securities and

Exchange Commission and issued under the

Securities Act of 1933 (15 U.S.C. 77a et seq.)).

(B) Inclusions

The term ‘‘lender’’ includes—

(i) a qualified retirement plan (as defined

in section 4974(c) of title 26) that is a qualified institutional buyer; and

(ii) a governmental plan (as defined in

section 414(d) of title 26) that is a qualified

institutional buyer.

(6) Loan guarantee

The term ‘‘loan guarantee’’ means any guarantee or other pledge by the Secretary or the

Administrator to pay all or part of the principal of, and interest on, a loan or other debt

obligation issued by an obligor and funded by

a lender.

(7) Obligor

The term ‘‘obligor’’ means an eligible entity

that is primarily liable for payment of the

principal of, or interest on, a Federal credit

instrument.

(8) Project obligation

(A) In general

The term ‘‘project obligation’’ means any

note, bond, debenture, or other debt obligation issued by an obligor in connection with

the financing of a project.

(B) Exclusion

The term ‘‘project obligation’’ does not include a Federal credit instrument.
Page 815 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 3903

1So in original. The period probably should not appear.

(9) Rating agency

The term ‘‘rating agency’’ means a credit

rating agency registered with the Securities

and Exchange Commission as a nationally recognized statistical rating organization (as defined in section 78c(a) of title 15).

(10) Secured loan

The term ‘‘secured loan’’ means a direct

loan or other debt obligation issued by an obligor and funded by the Secretary or Administrator, as applicable, in connection with the

financing of a project under section 3908 of

this title.

(11) State

The term ‘‘State’’ means—

(A) a State;

(B) the District of Columbia;

(C) the Commonwealth of Puerto Rico; and

(D) any other territory or possession of the

United States.

(12) State infrastructure financing authority

The term ‘‘State infrastructure financing

authority’’ means the State entity established

or designated by the Governor of a State to receive a capitalization grant provided by, or

otherwise carry out the requirements of, title

VI of the Federal Water Pollution Control Act

(33 U.S.C. 1381 et.1 seq.) or section 300j–12 of

title 42.

(13) Subsidy amount

The term ‘‘subsidy amount’’ means the

amount of budget authority sufficient to cover

the estimated long-term cost to the Federal

Government of a Federal credit instrument, as

calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays

in accordance with the Federal Credit Reform

Act of 1990 (2 U.S.C. 661 et seq.).

(14) Substantial completion

The term ‘‘substantial completion’’, with respect to a project, means the earliest date on

which a project is considered to perform the

functions for which the project is designed.

(15) Treatment works

The term ‘‘treatment works’’ has the meaning given the term in section 212 of the Federal Water Pollution Control Act (33 U.S.C.

1292).

(Pub. L. 113–121, title V, §5022, June 10, 2014, 128

Stat. 1332.)

REFERENCES IN TEXT

The Securities Act of 1933, referred to in par. (5)(A),

is title I of act May 27, 1933, ch. 38, 48 Stat. 74, which

is classified generally to subchapter I (§77a et seq.) of

chapter 2A of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section

77a of Title 15 and Tables.

The Federal Water Pollution Control Act, referred to

in par. (12), is act June 30, 1948, ch. 758, as amended generally by Pub. L. 92–500, §2, Oct. 18, 1972, 86 Stat. 816,

which is classified generally to chapter 26 (§1251 et seq.)

of this title. Title VI of the Act is classified generally

to subchapter VI (§1381 et seq.) of chapter 26 of this

title. For complete classification of this Act to the

Code, see Short Title note set out under section 1251 of

this title and Tables.

The Federal Credit Reform Act of 1990, referred to in

par. (13), is title V of Pub. L. 93–344, as added by Pub.

L. 101–508, title XIII, §13201(a), Nov. 5, 1990, 104 Stat.

1388–609, which is classified generally to subchapter III

(§661 et seq.) of chapter 17A of Title 2, The Congress.

For complete classification of this Act to the Code, see

Short Title note set out under section 621 of Title 2 and

Tables.

SHORT TITLE

Pub. L. 113–121, title V, §5021, June 10, 2014, 128 Stat.

1332, provided that: ‘‘This subtitle [subtitle C

(§§5021–5035) of title V of Pub. L. 113–121, enacting this

chapter] may be cited as the ‘Water Infrastructure Finance and Innovation Act of 2014’.’’

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3902. Authority to provide assistance

(a) In general

The Secretary and the Administrator may provide financial assistance under this chapter to

carry out pilot projects, which shall be selected

to ensure a diversity of project types and geographical locations.

(b) Responsibility

(1) Secretary

The Secretary shall carry out all pilot

projects under this chapter that are eligible

projects under section 3905(1) of this title.

(2) Administrator

The Administrator shall carry out all pilot

projects under this chapter that are eligible

projects under paragraphs (2), (3), (4), (5), (6),

and (8) of section 3905 of this title.

(3) Other projects

The Secretary or the Administrator, as applicable, may carry out eligible projects under

paragraph (7) or (9) of section 3905 of this title.

(Pub. L. 113–121, title V, §5023, June 10, 2014, 128

Stat. 1333.)

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3903. Applications

(a) In general

To receive assistance under this chapter, an

eligible entity shall submit to the Secretary or

the Administrator, as applicable, an application

at such time, in such manner, and containing

such information as the Secretary or the Administrator may require.

(b) Combined projects

In the case of an eligible project described in

paragraph (8) or (9) of section 3905 of this title,

the Secretary or the Administrator, as applicable, shall require the eligible entity to submit a

single application for the combined group of

projects.

(Pub. L. 113–121, title V, §5024, June 10, 2014, 128

Stat. 1333.)
§ 3904 TITLE 33—NAVIGATION AND NAVIGABLE WATERS Page 816

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3904. Eligible entities

The following entities are eligible to receive

assistance under this chapter:

(1) A corporation.

(2) A partnership.

(3) A joint venture.

(4) A trust.

(5) A Federal, State, or local governmental

entity, agency, or instrumentality.

(6) A tribal government or consortium of

tribal governments.

(7) A State infrastructure financing authority.

(Pub. L. 113–121, title V, §5025, June 10, 2014, 128

Stat. 1334.)

§ 3905. Projects eligible for assistance

The following projects may be carried out

with amounts made available under this chapter:

(1) Any project for flood damage reduction,

hurricane and storm damage reduction, environmental restoration, coastal or inland harbor navigation improvement, or inland and intracoastal waterways navigation improvement

that the Secretary determines is technically

sound, economically justified, and environmentally acceptable, including—

(A) a project to reduce flood damage;

(B) a project to restore aquatic ecosystems;

(C) a project to improve the inland and intracoastal waterways navigation system of

the United States; and

(D) a project to improve navigation of a

coastal or inland harbor of the United

States, including channel deepening and

construction of associated general navigation features.

(2) 1 or more activities that are eligible for

assistance under section 1383(c) of this title,

notwithstanding the public ownership requirement under paragraph (1) of that subsection.

(3) 1 or more activities described in section

300j–12(a)(2) of title 42.

(4) A project for enhanced energy efficiency

in the operation of a public water system or a

publicly owned treatment works.

(5) A project for repair, rehabilitation, or replacement of a treatment works, community

water system, or aging water distribution or

waste collection facility (including a facility

that serves a population or community of an

Indian reservation).

(6) A brackish or sea water desalination

project, a managed aquifer recharge project,

or a water recycling project.

(7) Acquisition of real property or an interest in real property—

(A) if the acquisition is integral to a

project described in paragraphs (1) through

(6); or

(B) pursuant to an existing plan that, in

the judgment of the Administrator or the

Secretary, as applicable, would mitigate the

environmental impacts of water resources

infrastructure projects otherwise eligible for

assistance under this section.

(8) A combination of projects, each of which

is eligible under paragraph (2) or (3), for which

a State infrastructure financing authority

submits to the Administrator a single application.

(9) A combination of projects secured by a

common security pledge, each of which is eligible under paragraph (1), (2), (3), (4), (5), (6), or

(7), for which an eligible entity, or a combination of eligible entities, submits a single application.

(Pub. L. 113–121, title V, §5026, June 10, 2014, 128

Stat. 1334.)

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3906. Activities eligible for assistance

For purposes of this chapter, an eligible activity with respect to an eligible project includes

the cost of—

(1) development-phase activities, including

planning, feasibility analysis (including any

related analysis necessary to carry out an eligible project), revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities;

(2) construction, reconstruction, rehabilitation, and replacement activities;

(3) the acquisition of real property or an interest in real property (including water rights,

land relating to the project, and improvements to land), environmental mitigation (including acquisitions pursuant to section

3905(7) of this title), construction contingencies, and acquisition of equipment; and

(4) capitalized interest necessary to meet

market requirements, reasonably required reserve funds, capital issuance expenses, and

other carrying costs during construction.

(Pub. L. 113–121, title V, §5027, June 10, 2014, 128

Stat. 1335.)

§ 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

The project and obligor shall be creditworthy, which shall be determined by the

Secretary or the Administrator, as applicable.

(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—
Page 817 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 3907

(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

The Secretary or the Administrator, as applicable, shall ensure that any financing for

the project has appropriate security features, such as a rate covenant, supporting

the project obligations to ensure repayment.

(D) Rating opinion letters

(i) Preliminary rating opinion letter

The Secretary or the Administrator, as

applicable, shall require each project applicant to provide, at the time of application, a preliminary rating opinion letter

from at least 1 rating agency indicating

that the senior obligations of the project

(which may be the Federal credit instrument) have the potential to achieve an investment-grade rating.

(ii) Final rating opinion letters

The Secretary or the Administrator, as

applicable, shall require each project applicant to provide, prior to final acceptance and financing of the project, final

rating opinion letters from at least 2 rating agencies indicating that the senior obligations of the project have an investment-grade rating.

(E) Special rule for certain combined

projects

The Administrator shall develop a credit

evaluation process for a Federal credit instrument provided to a State infrastructure

financing authority for a project under section 3905(8) of this title or an entity 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 2

rating agencies.

(2) Eligible project costs

(A) In general

Subject to subparagraph (B), the eligible

project costs of a project shall be reasonably

anticipated to be not less than $20,000,000.

(B) Small community water infrastructure

projects

For a project described in paragraph (2) or

(3) of section 3905 of this title that serves a

community of not more than 25,000 individuals, the eligible project costs of a project

shall be reasonably anticipated to be not

less than $5,000,000.

(3) Dedicated revenue sources

The Federal credit instrument for the

project shall be repayable, in whole or in part,

from dedicated revenue sources that also secure the project obligations.

(4) Public sponsorship of private entities

(A) In general

If an eligible project is carried out by an

entity that is not a State or local government or an agency or instrumentality of a

State or local government or a tribal government or consortium of tribal governments, the project shall be publicly sponsored.

(B) Public sponsorship

For purposes of this chapter, a project

shall be considered to be publicly sponsored

if the obligor can demonstrate, to the satisfaction of the Secretary or the Administrator, as appropriate, that the project applicant has consulted with the affected

State, local, or tribal government in which

the project is located, or is otherwise affected by the project, and that such government supports the proposed project.

(5) Limitation

No project receiving Federal credit assistance under this chapter may be financed (directly or indirectly), in whole or in part, with

proceeds of any obligation—

(A) the interest on which is exempt from

the tax imposed under chapter 1 of title 26;

or

(B) with respect to which credit is allowable under subpart I or J of part IV of subchapter A of chapter 1 of title 26.

(6) Use of existing financing mechanisms

(A) Notification

For each eligible project for which the Administrator has authority under paragraph

(2) or (3) of section 3902(b) of this title and

for which the Administrator has received an

application for financial assistance under

this chapter, the Administrator shall notify,

not later than 30 days after the date on

which the Administrator receives a complete

application, the applicable State infrastructure financing authority of the State in

which the project is located that such application has been submitted.

(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.

(7) Operation and maintenance plan

(A) In general

The Secretary or the Administrator, as applicable, shall determine whether an appli-
§ 3908 TITLE 33—NAVIGATION AND NAVIGABLE WATERS Page 818

cant for assistance under this chapter has

developed, and identified adequate revenues

to implement, a plan for operating, maintaining, and repairing the project over the

useful life of the project.

(B) Special rule

An eligible project described in section

3905(1) of this title that has not been specifically authorized by Congress shall not be eligible for Federal assistance for operations

and maintenance.

(b) Selection criteria

(1) Establishment

The Secretary or the Administrator, as applicable, shall establish criteria for the selection of projects that meet the eligibility requirements of subsection (a), in accordance

with paragraph (2).

(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

For a project described in section 3905(8) of

this title, the Administrator shall only consider the criteria described in subparagraphs

(B) through (K) of paragraph (2).

(c) Federal requirements

Nothing in this section supersedes the applicability of other requirements of Federal law (including regulations).

(Pub. L. 113–121, title V, §5028, June 10, 2014, 128

Stat. 1335.)

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3908. Secured loans

(a) Agreements

(1) In general

Subject to paragraphs (2) and (3), the Secretary or the Administrator, as applicable,

may enter into agreements with 1 or more obligors to make secured loans, the proceeds of

which shall be used to finance eligible project

costs of any project selected under section 3907

of this title.

(2) Financial risk assessment

Before entering into an agreement under

this subsection for a secured loan, the Secretary or the Administrator, as applicable, in

consultation with the Director of the Office of

Management and Budget and each rating

agency providing a rating opinion letter under

section 3907(a)(1)(D) of this title, shall determine an appropriate capital reserve subsidy

amount for the secured loan, taking into account each such rating opinion letter.

(3) Investment-grade rating requirement

The execution of a secured loan under this

section shall be contingent on receipt by the

senior obligations of the project of an investment-grade rating.

(b) Terms and limitations

(1) In general

A secured loan provided for a project under

this section shall be subject to such terms and

conditions, and contain such covenants, representations, warranties, and requirements

(including requirements for audits), as the

Secretary or the Administrator, as applicable,

determines to be appropriate.

(2) Maximum amount

The amount of a secured loan under this section shall not exceed the lesser of—
Page 819 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 3908

(A) an amount equal to 49 percent of the

reasonably anticipated eligible project costs;

and

(B) if the secured loan does not receive an

investment-grade rating, the amount of the

senior project obligations of the project.

(3) Payment

A secured loan under this section—

(A) shall be payable, in whole or in part,

from State or local taxes, user fees, or other

dedicated revenue sources that also secure

the senior project obligations of the relevant

project;

(B) shall include a rate covenant, coverage

requirement, or similar security feature supporting the project obligations; and

(C) may have a lien on revenues described

in subparagraph (A), subject to any lien securing project obligations.

(4) Interest rate

The interest rate on a secured loan under

this section shall be not less than the yield on

United States Treasury securities of a similar

maturity to the maturity of the secured loan

on the date of execution of the loan agreement.

(5) Maturity date

(A) In general

The final maturity date of a secured loan

under this section shall be the earlier of—

(i) the date that is 35 years after the date

of substantial completion of the relevant

project (as determined by the Secretary or

the Administrator, as applicable); and

(ii) if the useful life of the project (as determined by the Secretary or Administrator, as applicable) is less than 35 years,

the useful life the project.

(B) Special rule for State infrastructure financing authorities

The final maturity date of a secured loan

to a State infrastructure financing authority under this section shall be not later than

35 years after the date on which amounts are

first disbursed.

(6) Nonsubordination

A secured loan under this section shall not

be subordinated to the claims of any holder of

project obligations in the event of bankruptcy,

insolvency, or liquidation of the obligor of the

project.

(7) Fees

The Secretary or the Administrator, as applicable, may establish fees at a level sufficient to cover all or a portion of the costs to

the Federal Government of making a secured

loan under this section.

(8) Non-Federal share

The proceeds of a secured loan under this

section may be used to pay any non-Federal

share of project costs required if the loan is repayable from non-Federal funds.

(9) Maximum Federal involvement

(A) In general

Except as provided in subparagraph (B),

for each project for which assistance is provided under this chapter, the total amount

of Federal assistance shall not exceed 80 percent of the total project cost.

(B) Exceptions

Subparagraph (A) shall not apply to any

rural water project—

(i) that is authorized to be carried out by

the Secretary of the Interior;

(ii) that includes among its beneficiaries

a federally recognized Indian tribe; and

(iii) for which the authorized Federal

share of the total project costs is greater

than the amount described in subparagraph (A).

(c) Repayment

(1) Schedule

The Secretary or the Administrator, as applicable, shall establish a repayment schedule

for each secured loan provided under this section, based on the projected cash flow from

project revenues and other repayment sources.

(2) Commencement

(A) In general

Scheduled loan repayments of principal or

interest on a secured loan under this section

shall commence not later than 5 years after

the date of substantial completion of the

project (as determined by the Secretary or

Administrator, as applicable).

(B) Special rule for State infrastructure financing authorities

Scheduled loan repayments of principal or

interest on a secured loan to a State infrastructure financing authority under this

chapter shall commence not later than 5

years after the date on which amounts are

first disbursed.

(3) Deferred payments

(A) Authorization

If, at any time after the date of substantial completion of a project for which a secured loan is provided under this section, the

project is unable to generate sufficient revenues to pay the scheduled loan repayments

of principal and interest on the secured loan,

the Secretary or the Administrator, as applicable, subject to subparagraph (C), may

allow the obligor to add unpaid principal and

interest to the outstanding balance of the

secured loan.

(B) Interest

Any payment deferred under subparagraph

(A) shall—

(i) continue to accrue interest in accordance with subsection (b)(4) until fully repaid; and

(ii) be scheduled to be amortized over the

remaining term of the secured loan.

(C) Criteria

(i) In general

Any payment deferral under subparagraph (A) shall be contingent on the

project meeting such criteria as the Secretary or the Administrator, as applicable,

may establish.
§ 3909 TITLE 33—NAVIGATION AND NAVIGABLE WATERS Page 820

(ii) Repayment standards

The criteria established under clause (i)

shall include standards for reasonable assurance of repayment.

(4) Prepayment

(A) Use of excess revenues

Any excess revenues that remain after satisfying scheduled debt service requirements

on the project obligations and secured loan

and all deposit requirements under the

terms of any trust agreement, bond resolution, or similar agreement securing project

obligations may be applied annually to prepay a secured loan under this section without penalty.

(B) Use of proceeds of refinancing

A secured loan under this section may be

prepaid at any time without penalty from

the proceeds of refinancing from non-Federal

funding sources.

(d) Sale of secured loans

(1) In general

Subject to paragraph (2), as soon as practicable after the date of substantial completion of a project and after providing a notice

to the obligor, the Secretary or the Administrator, as applicable, may sell to another entity or reoffer into the capital markets a secured loan for a project under this section, if

the Secretary or the Administrator, as applicable, determines that the sale or reoffering

can be made on favorable terms.

(2) Consent of obligor

In making a sale or reoffering under paragraph (1), the Secretary or the Administrator,

as applicable, may not change the original

terms and conditions of the secured loan without the written consent of the obligor.

(e) Loan guarantees

(1) In general

The Secretary or the Administrator, as applicable, may provide a loan guarantee to a

lender in lieu of making a secured loan under

this section, if the Secretary or the Administrator, as applicable, determines that the

budgetary cost of the loan guarantee is substantially the same as that of a secured loan.

(2) Terms

The terms of a loan guarantee provided

under this subsection shall be consistent with

the terms established in this section for a secured loan, except that the rate on the guaranteed loan and any prepayment features shall

be negotiated between the obligor and the

lender, with the consent of the Secretary or

the Administrator, as applicable.

(Pub. L. 113–121, title V, §5029, June 10, 2014, 128

Stat. 1338.)

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3909. Program administration

(a) Requirement

The Secretary or the Administrator, as applicable, shall establish a uniform system to service the Federal credit instruments made available under this chapter.

(b) Fees

(1) In general

The Secretary or the Administrator, as applicable, may collect and spend fees, contingent on authority being provided in appropriations Acts, at a level that is sufficient to

cover—

(A) the costs of services of expert firms retained pursuant to subsection (d); and

(B) all or a portion of the costs to the Federal Government of servicing the Federal

credit instruments provided under this chapter.

(c) Servicer

(1) In general

The Secretary or the Administrator, as applicable, may appoint a financial entity to assist the Secretary or the Administrator in

servicing the Federal credit instruments provided under this chapter.

(2) Duties

A servicer appointed under paragraph (1)

shall act as the agent for the Secretary or the

Administrator, as applicable.

(3) Fee

A servicer appointed under paragraph (1)

shall receive a servicing fee, subject to approval by the Secretary or the Administrator,

as applicable.

(d) Assistance from experts

The Secretary or the Administrator, as applicable, may retain the services, including counsel, of organizations and entities with expertise

in the field of municipal and project finance to

assist in the underwriting and servicing of Federal credit instruments provided under this

chapter.

(e) Applicability of other laws

Section 513 of the Federal Water Pollution

Control Act (33 U.S.C. 1372) applies to the construction of a project carried out, in whole or in

part, with assistance made available through a

Federal credit instrument under this chapter in

the same manner that section applies to a treatment works for which a grant is made available

under that Act [33 U.S.C. 1251 et seq.].

(Pub. L. 113–121, title V, §5030, June 10, 2014, 128

Stat. 1341.)

REFERENCES IN TEXT

The Federal Water Pollution Control Act, referred to

in subsec. (e), is act June 30, 1948, ch. 758, as amended

generally by Pub. L. 92–500, §2, Oct. 18, 1972, 86 Stat. 816,

which is classified generally to chapter 26 (§1251 et seq.)

of this title. For complete classification of this Act to

the Code, see Short Title note set out under section

1251 of this title and Tables.

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3910. State, tribal, and local permits

The provision of financial assistance for a

project under this chapter shall not—
Page 821 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 3913

(1) relieve any recipient of the assistance of

any obligation to obtain any required State,

local, or tribal permit or approval with respect

to the project;

(2) limit the right of any unit of State, local,

or tribal government to approve or regulate

any rate of return on private equity invested

in the project; or

(3) otherwise supersede any State, local, or

tribal law (including any regulation) applicable to the construction or operation of the

project.

(Pub. L. 113–121, title V, §5031, June 10, 2014, 128

Stat. 1342.)

§ 3911. Regulations

The Secretary or the Administrator, as applicable, may promulgate such regulations as the

Secretary or Administrator determines to be appropriate to carry out this chapter.

(Pub. L. 113–121, title V, §5032, June 10, 2014, 128

Stat. 1342.)

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3912. Funding

(a) In general

There is authorized to be appropriated to each

of the Secretary and the Administrator to carry

out this chapter, to remain available until expended—

(1) $20,000,000 for fiscal year 2015;

(2) $25,000,000 for fiscal year 2016;

(3) $35,000,000 for fiscal year 2017;

(4) $45,000,000 for fiscal year 2018; and

(5) $50,000,000 for fiscal year 2019.

(b) Administrative costs

Of the funds made available to carry out this

chapter, the Secretary or the Administrator, as

applicable, may use for the administration of

this chapter, including for the provision of technical assistance to aid project sponsors in obtaining the necessary approvals for the project,

not more than $2,200,000 for each of fiscal years

2015 through 2019.

(c) Small community water infrastructure

projects

(1) In general

For each fiscal year, the Secretary or the

Administrator, as applicable, shall set aside

not less than 15 percent of the amounts made

available for that fiscal year under this section for small community water infrastructure projects described in section 3907(a)(2)(B)

of this title.

(2) Administration

Any amounts set aside under paragraph (1)

that remain unobligated on June 1 of the fiscal year for which the amounts are set aside

shall be available for obligation by the Secretary or the Administrator, as applicable, for

projects other than small community water

infrastructure projects.

(d) Additional funding

Notwithstanding section 3908(b)(2) of this title,

the Secretary or the Administrator, as applicable, may make available up to 25 percent of the

amounts made available for each fiscal year

under this section for loans in excess of 49 percent of the total project costs.

(Pub. L. 113–121, title V, §5033, June 10, 2014, 128

Stat. 1342.)

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3913. Reports on pilot program implementation

(a) Agency reporting

As soon as practicable after each fiscal year

for which amounts are made available to carry

out this chapter, the Secretary and the Administrator shall publish on a dedicated, publicly accessible Internet site—

(1) each application received for assistance

under this chapter; and

(2) a list of the projects selected for assistance under this chapter, including—

(A) a description of each project;

(B) the amount of financial assistance provided for each project; and

(C) the basis for the selection of each

project with respect to the requirements of

this chapter.

(b) Reports to Congress

(1) In general

Not later than 4 years after June 10, 2014, the

Comptroller General of the United States shall

submit to the Committee on Environment and

Public Works of the Senate and the Committee on Transportation and Infrastructure of

the House of Representatives a report summarizing for the projects that are receiving, or

have received, assistance under this chapter—

(A) the applications received for assistance

under this chapter;

(B) the projects selected for assistance

under this chapter, including a description

of the projects and the basis for the selection of those projects with respect to the requirements of this chapter;

(C) the type and amount of financial assistance provided for each project selected

for assistance under this chapter;

(D) the financial performance of each

project selected for assistance under this

chapter, including an evaluation of whether

the objectives of this chapter are being met;

(E) the benefits and impacts of implementation of this chapter, including the public

benefit provided by the projects selected for

assistance under this chapter, including, as

applicable, water quality and water quantity

improvement, the protection of drinking

water, and the reduction of flood risk; and

(F) an evaluation of the feasibility of attracting non-Federal public or private financing for water infrastructure projects as

a result of the implementation of this chapter.

(2) Recommendations

The report under paragraph (1) shall include—

(A) an evaluation of the impacts (if any) of

the limitation under section 3907(a)(5) of this
§ 3914 TITLE 33—NAVIGATION AND NAVIGABLE WATERS Page 822

title on the ability of eligible entities to finance water infrastructure projects under

this chapter;

(B) a recommendation as to whether the

objectives of this chapter would be best

served—

(i) by continuing the authority of the

Secretary or the Administrator, as applicable, to provide assistance under this

chapter;

(ii) by establishing a Government corporation or Government-sponsored enterprise to provide assistance in accordance

with this chapter; or

(iii) by terminating the authority of the

Secretary and the Administrator under

this chapter and relying on the capital

markets to fund the types of infrastructure investments assisted by this chapter

without Federal participation; and

(C) any proposed changes to improve the

efficiency and effectiveness of this chapter

in providing financing for water infrastructure projects, taking into consideration the

recommendations made under subparagraphs

(A) and (B).

(Pub. L. 113–121, title V, §5034, June 10, 2014, 128

Stat. 1343.)

‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section

2201 of this title.

§ 3914. Requirements

(a) In general

Except as provided in subsection (c), none of

the amounts made available under this chapter

may be used for the construction, alteration,

maintenance, or repair of a project eligible for

assistance under this chapter unless all of the

iron and steel products used in the project are

produced in the United States.

(b) Definition of iron and steel products

In this section, the term ‘‘iron and steel products’’ means the following products made primarily of iron or steel: lined or unlined pipes

and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe

clamps and restraints, valves, structural steel,

reinforced precast concrete, and construction

materials.

(c) Application

Subsection (a) shall not apply in any case or

category of cases in which the Administrator

finds that—

(1) applying subsection (a) would be inconsistent with the public interest;

(2) iron and steel products are not produced

in the United States in sufficient and reasonably available quantities and of a satisfactory

quality; or

(3) inclusion of iron and steel products produced in the United States will increase the

cost of the overall project by more than 25 percent.

(d) Waiver

If the Administrator receives a request for a

waiver under this section, the Administrator

shall make available to the public, on an informal basis, a copy of the request and information

available to the Administrator concerning the

request, and shall allow for informal public

input on the request for at least 15 days prior to

making a finding based on the request. The Administrator shall make the request and accompanying information available by electronic

means, including on the official public Internet

Web site of the Environmental Protection Agency.

(e) International agreements

This section shall be applied in a manner consistent with United States obligations under

international agreements.

(Pub. L. 113–121, title V, §5035, June 10, 2014, 128

Stat. 1344.)

CHAPTER 53—HARMFUL ALGAL BLOOM AND

HYPOXIA RESEARCH AND CONTROL

Sec.

4001. Assessments.

4001a. Consultation required.

4002. National harmful algal bloom and hypoxia

program.

4003. Comprehensive research plan and action

strategy.

4004. Northern Gulf of Mexico hypoxia.

4005. Great Lakes hypoxia and harmful algal

blooms.

4006. Protection of States’ rights.

4007. Effect on other Federal authority.

4008. Definitions.

4009. Authorization of appropriations.

§ 4001. Assessments

(a) Establishment of Inter-Agency Task Force

The President, through the Committee on Environment and Natural Resources of the National Science and Technology Council, shall establish an Inter-Agency Task Force on Harmful

Algal Blooms and Hypoxia. The Task Force

shall consist of a representative from—

(1) the Department of Commerce (who shall

serve as Chairman of the Task Force);

(2) the Environmental Protection Agency;

(3) the Department of Agriculture;

(4) the Department of the Interior;

(5) the Department of the Navy;

(6) the Department of Health and Human

Services;

(7) the National Science Foundation;

(8) the National Aeronautics and Space Administration;

(9) the Food and Drug Administration;

(10) the Office of Science and Technology

Policy;

(11) the Council on Environmental Quality;

(12) the Centers for Disease Control and Prevention; and

(13) other Federal agencies as the President

considers appropriate.

(b) Assessment of harmful algal blooms

(1) Not later than 12 months after November

13, 1998, the Task Force, in cooperation with the

coastal States, Indian tribes, and local governments, industry (including agricultural organizations), academic institutions, and non-governmental organizations with expertise in coastal

zone management, shall complete and submit to