loan on the date of execution of the loan agreement, 
as determined by the Secretary. 
(5) MATURITY DATE.—The final maturity date 
of a secured loan under this section shall be not 
later than 35 years after the date of substantial 
completion of the relevant project. 
(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 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. 
(c) REPAYMENT.— 
(1) SCHEDULE.—The Secretary 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. 
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(2) COMMENCEMENT.—Scheduled loan repay-
ment 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. 
(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 gen-
erate sufficient revenues to pay the scheduled 
loan repayments of principal and interest on the 
secured loan, the Secretary may allow the obli-
gor, subject to subparagraph (C), to add unpaid 
principal and interest to the outstanding bal-
ance of the secured loan. 
(B) INTEREST.—Any payment deferred 
under subparagraph (A) shall— 
(i) continue to accrue interest in ac-
cordance with subsection (b)(4) until fully 
repaid; and 
(ii) be scheduled to be amortized over 
the remaining term of the secured loan. 
(C) CRITERIA.— 
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(i) IN GENERAL.—Any payment defer-
ral under subparagraph (A) shall be con-
tingent on the project meeting such cri-
teria as the Secretary may establish. 
(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 ex-
cess revenues that remain after satisfying 
scheduled debt service requirements on the 
project obligations and secured loan and all de-
posit requirements under the terms of any trust 
agreement, bond resolution, or similar agree-
ment securing project obligations may be ap-
plied annually to prepay a secured loan under 
this section without penalty. 
(B) 
USE
OF
PROCEEDS
OF
REFI-
NANCING.—A secured loan under this section 
may be prepaid at any time without penalty 
from the proceeds of refinancing from non-Fed-
eral funding sources. 
(d) SALE OF SECURED LOANS.— 
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(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 may sell to another en-
tity or reoffer into the capital markets a secured 
loan for a project under this section, if the Secretary 
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 
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 may provide a 
loan guarantee to a lender in lieu of making a se-
cured loan under this section, if the Secretary deter-
mines 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 se-
cured loan, except that the rate on the guaranteed 
loan and any prepayment features shall be nego-
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tiated between the obligor and the lender, with the 
consent of the Secretary. 
SEC. 217. PROGRAM ADMINISTRATION. 
(a) REQUIREMENT.—The Secretary shall establish a 
uniform system to service the Federal credit instruments 
made available under this subtitle. 
(b) FEES.—The Secretary may collect and spend 
fees, contingent on authority being provided in appropria-
tions Acts, at a level that is sufficient to cover— 
(1) the costs of services of expert firms retained 
pursuant to subsection (d); and 
(2) all or a portion of the costs to the Federal 
Government of servicing the Federal credit instru-
ments provided under this subtitle. 
(c) SERVICER.— 
(1) IN GENERAL.—The Secretary may appoint 
a financial entity to assist the Secretary in servicing 
the Federal credit instruments provided under this 
subtitle. 
(2) DUTIES.—A servicer appointed under para-
graph (1) shall act as the agent for the Secretary. 
(3) FEE.—A servicer appointed under para-
graph (1) shall receive a servicing fee, subject to ap-
proval by the Secretary. 
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(d) ASSISTANCE FROM EXPERTS.—The Secretary 
may retain the services, including counsel, of any organi-
zation or entity with expertise in the field of municipal 
and project finance to assist in the underwriting and serv-
icing of Federal credit instruments provided under this 
subtitle. 
(e) LOAN COORDINATION; INTERAGENCY COOPERA-
TION.—The Secretary— 
(1) shall coordinate implementation of loan 
guarantees under this section with the Administrator 
to avoid duplication and enhance the effectiveness of 
implementation of the State revolving funds estab-
lished under the Federal Water Pollution Control 
Act (33 U.S.C. 1251 et seq.) and the Safe Drinking 
Water Act (42 U.S.C. 300f et seq.); 
(2) shall consult with the Secretary of Agri-
culture before promulgating criteria with respect to 
financial appraisal functions and loan guarantee ad-
ministration for activities carried out under this sub-
title; and 
(3) may enter into a memorandum of agree-
ment providing for Department of Agriculture finan-
cial appraisal functions and loan guarantee adminis-
tration for activities carried out under this subtitle. 
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SEC. 218. STATE AND LOCAL PERMITS. 
The provision of financial assistance for a project 
under this subtitle shall not— 
(1) relieve any recipient of the assistance of any 
obligation to obtain any required State or local per-
mit or approval with respect to the project; 
(2) limit the right of any unit of State or local 
government to approve or regulate any rate of re-
turn on private equity invested in the project; or 
(3) otherwise supersede any State or local law 
(including any regulation) applicable to the construc-
tion or operation of the project. 
SEC. 219. REGULATIONS. 
The Secretary may promulgate such regulations as 
the Secretary determines to be appropriate to carry out 
this subtitle. 
SEC. 220. FUNDING. 
(a) IN GENERAL.—There is authorized to be appro-
priated to the Secretary to carry out this subtitle 
$50,000,000 for each of fiscal years 2015 through 2019, 
to remain available until expended. 
(b) ADMINISTRATIVE COSTS.—Of the funds made 
available to carry out this subtitle, the Secretary may use 
for the administration of this subtitle not more than 
$2,200,000 for each of fiscal years 2015 through 2019. 
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SEC. 221. REPORT TO CONGRESS. 
Not later than 2 years after the date of enactment 
of this Act, and every 2 years thereafter, the Secretary 
shall submit to the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Natural Re-
sources of the House of Representatives a report summa-
rizing the financial performance and on-the-ground out-
comes of the projects that are receiving, or have received, 
assistance under this subtitle, including an assessment of 
whether the objectives of this subtitle are being met. 
Subtitle 
B—Integrated 
Regional 
Water 
Management, 
Reclama-
tion, and Recycling Projects 
SEC. 231. WATER STORAGE PROJECTS. 
(a) AGREEMENTS.—The Secretary may enter into a 
cost-shared financial assistance agreement with any non- 
Federal entity in a Reclamation State or the State of Ha-
waii to carry out the planning, design, and construction 
of any permanent water storage and conveyance facility 
used solely to regulate and maximize the water supply 
arising from a project that is eligible for assistance under 
this title or any other provision of law— 
(1) to recycle wastewater, impaired surface 
water, and ground water; or 
(2) to use integrated and coordinated water 
management on a watershed or regional scale. 
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(b) FINANCIAL ASSISTANCE.—In providing financial 
assistance under this section, the Secretary shall give pri-
ority to storage and conveyance components that— 
(1) ensure the efficient and beneficial use of 
water or reuse of the recycled water; 
(2) make maximum use of natural systems; 
(3) consistent with Secretarial Order No. 3297, 
dated February 22, 2010, support sustainable water 
management practices and the water sustainability 
objectives of 1 or more offices of the Department of 
the Interior or any other Federal agency; 
(4)(A) increase the availability of usable water 
supplies in a watershed or region to benefit people, 
the economy, and the environment; and 
(B) include adaptive measures needed to ad-
dress climate change and future demands; 
(5) where practicable— 
(A) provide flood control or recreation ben-
efits; and 
(B) include the development of incremental 
hydroelectric power generation; 
(6) include partnerships that go beyond political 
and institutional jurisdictions to support the effi-
cient use of the limited water resources of the 
United States and the applicable region; 
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(7) generate environmental benefits, such as 
benefits to fisheries, wildlife and habitat, and water 
quality and water-dependent ecological systems, as 
well as water supply benefits to agricultural and 
urban water users; and 
(8) the financing of which leverages private and 
other non-Federal resources. 
(c) FEDERAL SHARE.—The Federal share of the cost 
of a project carried out under subsection (a) shall be— 
(1) equal to the lesser of— 
(A) 50 percent of total cost of the project; 
and 
(B) $15,000,000, adjusted for inflation; 
and 
(2) nonreimbursable. 
(d) NON-FEDERAL SHARE.—The non-Federal share 
of the cost of a project carried out under subsection (a) 
may include in-kind contributions to the planning, design, 
and construction of a project. 
(e) TITLE AND COSTS.—A non-Federal entity enter-
ing into a financial assistance agreement under this sec-
tion shall— 
(1) hold title to all facilities constructed under 
this section; and 
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(2) be solely responsible for the costs of oper-
ating and maintaining those facilities. 
SEC. 232. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated $150,000,000 
to carry out this subtitle. 
Subtitle C—Title Transfers 
SEC. 241. AUTHORIZATION TO TRANSFER TITLE. 
The Secretary may transfer to any non-Federal oper-
ating entity title to any Reclamation project or facility, 
or any separable element of such a project or facility, that 
is authorized before the date of enactment of this Act, if— 
(1) all previous Federal construction contract 
obligations or other related repayment contracts or 
agreements associated with the project have been 
paid out by a non-Federal project beneficiary; 
(2)(A) a project facility or separable element of 
such a facility is in need of rehabilitation or im-
provement, as determined by the Secretary; and 
(B) the non-Federal operating entity is other-
wise eligible for a loan guarantee under this title; 
(3) the title transfer meets all applicable Fed-
eral laws and regulations, as determined by the Sec-
retary; and 
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