to an eligible project under subsection (a) includes the cost 
of— 
(1) development-phase activities, including plan-
ning, feasibility analysis, revenue forecasting, envi-
ronmental review, permitting, transaction costs, pre-
liminary engineering and design work, and other 
preconstruction activities; 
(2) construction, reconstruction, rehabilitation, 
and replacement activities; 
(3) the acquisition of real property (including 
water rights, land relating to the project, and im-
provements to land), environmental mitigation, con-
struction contingencies, and acquisition of equip-
ment; 
(4) capitalized interest necessary to meet mar-
ket requirements, reasonably required reserve funds, 
capital issuance expenses, and other carrying costs 
during construction; 
(5) refinancing interim construction funding, 
long-term project obligations, or a secured loan, loan 
guarantee, or other credit enhancement made under 
this subtitle; 
(6) reimbursement or success payments to any 
public or private entity that achieves predetermined 
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outcomes on a pay-for-performance or pay-for-suc-
cess basis; and 
(7) grants, loans, or credit enhancement for 
community development financial institutions, green 
banks, and other financial intermediaries providing 
ongoing finance for projects that meet the purposes 
of this subtitle. 
SEC. 215. DETERMINATION OF ELIGIBILITY AND PROJECT 
SELECTION. 
(a) ELIGIBILITY REQUIREMENTS.—To be eligible to 
receive financial assistance under this subtitle, a project 
shall meet the following criteria, as determined by the Sec-
retary: 
(1) CREDITWORTHINESS.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the project shall be creditworthy, as 
determined by the Secretary, who shall ensure 
that any financing for the project has appro-
priate security features, such as a rate cov-
enant, to ensure repayment. 
(B) PRELIMINARY RATING OPINION LET-
TER.—The Secretary shall require each appli-
cant to provide a preliminary rating opinion let-
ter from at least 1 rating agency indicating that 
the senior obligations of the project (which may 
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be the Federal credit instrument) have the po-
tential to achieve an investment-grade rating. 
(2) ELIGIBLE
PROJECT
COSTS.—The eligible 
project costs of a project and other projects in a wa-
tershed shall be reasonably anticipated to be not less 
than $10,000,000. 
(3) DEDICATED REVENUE SOURCES.—The Fed-
eral credit instrument for the project shall be repay-
able, in whole or in part, from dedicated revenue 
sources that also secure the project obligations. 
(4) PUBLIC SPONSORSHIP OF PRIVATE ENTI-
TIES.—In the case of a project carried out by an en-
tity that is not a State or local government or an 
agency or instrumentality of a State or local govern-
ment, the project shall be publicly sponsored. 
(b) SELECTION CRITERIA.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish criteria for the selection of projects that meet 
the eligibility requirements of subsection (a), in ac-
cordance with paragraph (2). 
(2) CRITERIA.—The selection criteria shall in-
clude the following: 
(A) The extent to which the project is na-
tionally or regionally significant. 
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(B) The extent to which assistance under 
this section would foster innovative public-pri-
vate partnerships and attract private debt or 
equity investment. 
(C) The likelihood that assistance under 
this section would enable the project to proceed 
at an earlier date than the project would other-
wise be able to proceed. 
(D) The extent to which the project uses 
new or innovative approaches. 
(E) The extent to which projects track evi-
dence about the effectiveness of the 1 or more 
projects financed and the availability of the evi-
dence and project information to the public to 
facilitate replication. 
(F) The amount of budget authority re-
quired to fund the Federal credit instrument 
made available under this subtitle. 
(G) The extent to which the project helps 
maintain or protect the environment. 
(H) The extent to which the project sup-
ports the local economy and provides local jobs. 
(c) RECEIPT OF OTHER FEDERAL FUNDING.—Re-
ceipt of a Federal grant or contract or other Federal fund-
ing to support an eligible project shall not preclude the 
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project from being eligible for assistance under this sub-
title. 
(d) FEDERAL REQUIREMENTS.— 
(1) EFFECT OF SECTION.—Nothing in this sec-
tion supersedes the applicability of other require-
ments of Federal law (including regulations). 
(2) NEPA.—A Federal action carried out re-
garding a loan or loan guarantee provided under this 
subtitle shall not be considered to be a Federal ac-
tion for purposes of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
SEC. 216. SECURED LOANS. 
(a) AGREEMENTS.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
through (4), the Secretary may enter into agree-
ments with 1 or more obligors to make secured 
loans, the proceeds of which shall be used— 
(A) to finance eligible project costs of any 
project selected under section 206; 
(B) to refinance interim construction fi-
nancing of eligible project costs of any project 
selected under section 206; or 
(C) to refinance long-term project obliga-
tions or Federal credit instruments, if that refi-
nancing provides additional funding capacity for 
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