---
kind: "section"
citation: "43 U.S.C. § 2422"
title: "43"
title_heading: "Public Lands"
number: "2422"
heading: "Project eligibility"
release: "119-102"
url: "https://uscodex.org/usc/43/2422"
units:
  - "Chapter 42 — Rural Water Supply"
  - "Subchapter II — Twenty-First Century Water Works"
---

# §2422. Project eligibility

- (a) **Eligibility criteria—**
  - (1) **In general—** The [Secretary](/usc/43/2421.md?p=7) shall develop and publish in the Federal Register criteria for determining the eligibility of a [project](/usc/43/2421.md?p=6) for financial assistance under [section 2423 of this title](/usc/43/2423.md).
  - (2) **Inclusions—** Eligibility criteria shall include—
    - (A) submission of an application by the [lender](/usc/43/2421.md?p=2) to the [Secretary](/usc/43/2421.md?p=7);
    - (B) demonstration of the creditworthiness of the [project](/usc/43/2421.md?p=6), including a determination by the [Secretary](/usc/43/2421.md?p=7) that any financing for the [project](/usc/43/2421.md?p=6) has appropriate security features to ensure repayment;
    - (C) demonstration by the [non-Federal borrower](/usc/43/2421.md?p=4), to the satisfaction of the [Secretary](/usc/43/2421.md?p=7), of the ability of the [non-Federal borrower](/usc/43/2421.md?p=4) to repay the [project](/usc/43/2421.md?p=6) financing from user fees or other dedicated revenue sources;
    - (D) demonstration by the [non-Federal borrower](/usc/43/2421.md?p=4), to the satisfaction of the [Secretary](/usc/43/2421.md?p=7), of the ability of the [non-Federal borrower](/usc/43/2421.md?p=4) to pay all operations, maintenance, and replacement costs of the [project](/usc/43/2421.md?p=6) facilities; and
    - (E) such other criteria as the [Secretary](/usc/43/2421.md?p=7) determines to be appropriate.
- (b) **Waiver—** The [Secretary](/usc/43/2421.md?p=7) may waive any of the criteria in [subsection (a)(2)](#a-2) that the [Secretary](/usc/43/2421.md?p=7) determines to be duplicative or rendered unnecessary because of an action already taken by the United States.
- (c) **Projects previously authorized—** A [project](/usc/43/2421.md?p=6) that was authorized for construction under Federal reclamation laws prior to December 22, 2006, shall be eligible for assistance under this subchapter, subject to the criteria established by the [Secretary](/usc/43/2421.md?p=7) under [subsection (a)](#a).
- (d) **Criteria for rural water supply projects—** A rural water supply [project](/usc/43/2421.md?p=6) that is determined to be feasible under [section 2405 of this title](/usc/43/2405.md) is eligible for a [loan guarantee](/usc/43/2421.md?p=3) under [section 2423 of this title](/usc/43/2423.md).

## Source credit

(Pub. L. 109–451, title II, § 203, Dec. 22, 2006, 120 Stat. 3357.)