‘‘(1) ESTIMATE OF NET PROJECT COST.—Based 
on engineering studies, studies of economic feasi-
bility, and information on the expected use of equip-
ment or facilities, the Secretary shall estimate the 
net project cost. 
‘‘(2) FEDERAL SHARE.—The Federal share of a 
grant for the project shall not exceed 80 percent of 
the project net capital cost. 
‘‘(3) PRIORITY.—The Secretary shall give pri-
ority in allocating future obligations and contingent 
commitments to incur obligations to grant requests 
seeking a lower Federal share of the project net cap-
ital cost. 
‘‘(f) COOPERATIVE AGREEMENTS.— 
‘‘(1) IN
GENERAL.—An applicant may enter 
into an agreement with any public, private, or non-
profit entity to cooperatively implement any project 
funded with a grant under this subchapter. 
‘‘(2) FORMS OF PARTICIPATION.—Participation 
by an entity under paragraph (1) may consist of— 
‘‘(A) ownership or operation of any land, 
facility, vehicle, or other physical asset associ-
ated with the project; 
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‘‘(B) cost sharing of any project expense or 
non-Federal share of the project cost, including 
in-kind contributions; 
‘‘(C) carrying out administration, construc-
tion management, project management, project 
operation, or any other management or oper-
ational duty associated with the project; and 
‘‘(D) any other form of participation ap-
proved by the Secretary. 
‘‘(g) OVERSIGHT PROGRAM.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish an oversight program to monitor the 
effective and efficient use of funds authorized to 
carry out this section. 
‘‘(B) MINIMUM REQUIREMENT.—At a min-
imum, the program shall be responsive to all 
areas relating to financial integrity and project 
delivery. 
‘‘(2) FINANCIAL INTEGRITY.— 
‘‘(A) 
FINANCIAL
MANAGEMENT
SYS-
TEMS.—The Secretary shall perform annual re-
views that address elements of the applicant’s 
financial management systems that affect 
projects approved under subsection (a). 
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‘‘(B) PROJECT
COSTS.—The Secretary 
shall develop minimum standards for estimating 
project costs and shall periodically evaluate the 
practices of applicants for estimating project 
costs, awarding contracts, and reducing project 
costs. 
‘‘(3) PROJECT DELIVERY.—The Secretary shall 
perform annual reviews that address elements of the 
project delivery system of an applicant, which ele-
ments include one or more activities that are in-
volved in the life cycle of a project from conception 
to completion of the project. 
‘‘(4) RESPONSIBILITY OF THE APPLICANTS.— 
‘‘(A) IN GENERAL.—Each applicant shall 
submit to the Secretary for approval such 
plans, specifications, and estimates for each 
proposed project as the Secretary may require. 
‘‘(B) APPLICANT
SUBRECIPIENTS.—The 
applicant shall be responsible for determining 
that a subrecipient of Federal funds under this 
section has— 
‘‘(i) adequate project delivery systems 
for projects approved under this section; 
and 
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‘‘(ii) sufficient accounting controls to 
properly manage such Federal funds. 
‘‘(C) PERIODIC
REVIEW.—The Secretary 
shall periodically review the monitoring of sub-
recipients by the applicant. 
‘‘(5) 
SPECIFIC
OVERSIGHT
RESPONSIBIL-
ITIES.—Nothing in this section shall affect or dis-
charge any oversight responsibility of the Secretary 
specifically provided for under this title or other 
Federal law. 
‘‘(h) MAJOR PROJECTS.— 
‘‘(1) IN GENERAL.—A recipient of a grant for 
a project under this section with an estimated total 
cost of $500,000,000 or more, and a recipient for 
such other projects as may be identified by the Sec-
retary, shall submit to the Secretary for each 
project— 
‘‘(A) a project management plan; and 
‘‘(B) an annual financial plan. 
‘‘(2) PROJECT MANAGEMENT PLAN.—A project 
management plan shall document— 
‘‘(A) the procedures and processes that are 
in effect to provide timely information to the 
project decisionmakers to effectively manage the 
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scope, costs, schedules, quality of, and the Fed-
eral requirements applicable to, the project; and 
‘‘(B) the role of the agency leadership and 
management team in the delivery of the project. 
‘‘(3) 
FINANCIAL
PLAN.—A 
financial 
plan 
shall— 
‘‘(A) be based on detailed estimates of the 
cost to complete the project; and 
‘‘(B) provide for the annual submission of 
updates to the Secretary that are based on rea-
sonable assumptions, as determined by the Sec-
retary, of future increases in the cost to com-
plete the project. 
‘‘(i) OTHER PROJECTS.—A recipient of Federal fi-
nancial assistance for a project under this section with an 
estimated total cost of $100,000,000 or more that is not 
covered by subsection (h) shall prepare an annual financial 
plan. Annual financial plans prepared under this sub-
section shall be made available to the Secretary for review 
upon the request of the Secretary. 
‘‘(j) OTHER TERMS
AND CONDITIONS.—The Sec-
retary shall determine what additional grant terms and 
conditions are necessary and appropriate to meet the re-
quirements of this section. 
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