--- kind: "range" citation: "43 U.S.C. §§ 421a–421h" title: "43" from: "421a" to: "421h" count: 8 release: "119-102" url: "https://uscodex.org/usc/43/421a..421h" --- # §421a. Construction of distribution and drainage systems by irrigation districts or public agencies Distribution and drainage systems authorized to be constructed under the Federal reclamation laws may, in lieu of construction by the [Secretary](/usc/43/31b.md?p=7) of the Interior (referred to in [sections 421a to 421h](/usc/43/421a..421h.md) of this title as the “[Secretary](/usc/43/31b.md?p=7)”), be constructed by irrigation [districts](/usc/43/316a.md?p=2) or other public agencies according to plans and specifications approved by the [Secretary](/usc/43/31b.md?p=7) as provided in [sections 421a to 421h](/usc/43/421a..421h.md) of this title. The drainage systems referred to in [sections 421a to 421h](/usc/43/421a..421h.md) of this title are those required for collection and removal of excess irrigation water, either on or below the surface of the ground and do not include enlargement or alteration of existing waterways for disposition or natural runoff. # §421b. Loans for construction of distribution and drainage systems; repayment contract; time period for repayment of loan; “irrigation district or other public agency” defined To assist financially in the construction of the aforesaid local distribution and drainage systems by irrigation [districts](/usc/43/316a.md?p=2) and other public agencies the [Secretary](/usc/43/31b.md?p=7) is authorized, on application therefor by such irrigation [districts](/usc/43/316a.md?p=2) or other public agencies, to make [funds](/usc/43/1602.md?p=k) available on a loan basis from moneys appropriated for the construction of such distribution and drainage systems to any irrigation district or other public agency in an amount equal to the estimated construction cost of such system, contingent upon a finding by the [Secretary](/usc/43/31b.md?p=7) that the loan can be returned to the United States in accordance with the general repayment provisions of sections [485a(d)](/usc/43/485a.md?p=d) and [485h(d)](/usc/43/485h.md?p=d) of this title and upon a showing that such [district](/usc/43/316a.md?p=2) or agency already holds or can acquire all lands and interests in land (except public and other lands or interests in land owned by the United States which are within the administrative jurisdiction of the [Secretary](/usc/43/31b.md?p=7) and subject to disposition by him) necessary for the construction, operation, and maintenance of the project. The [Secretary](/usc/43/31b.md?p=7) shall, upon approval of a loan, including any loan for a distribution and drainage system receiving water from the San Luis unit, Central Valley project, authorized by the Act of June 3, 1960 (74 Stat. 156), enter into a repayment contract which includes such provisions as the [Secretary](/usc/43/31b.md?p=7) shall deem necessary and proper to provide assurance of prompt repayment of the loan within not to exceed forty years plus a development period not to exceed ten years. The term “irrigation district or other public agency” shall for the purposes of [sections 421a to 421h](/usc/43/421a..421h.md) of this title mean any conservancy [district](/usc/43/316a.md?p=2), irrigation [district](/usc/43/316a.md?p=2), water users’ organization, or other organization, which is organized under [State](/usc/43/31b.md?p=8) law and which has capacity to enter into contracts with the United States pursuant to the Federal reclamation laws. # §421c. Conditions of loan for distribution and drainage systems; reconveyance by Secretary of lands, interests in lands, and distribution works heretofore conveyed to the United States; conditions of reconveyance; rights of way The [Secretary](/usc/43/31b.md?p=7) shall require, as conditions to any such loan, that the borrower contribute in money or materials, labor, lands, or interests in land, computed at their reasonable value, a portion not in excess of 10 per centum, of the construction cost of the distribution and drainage system (including all costs of acquiring lands and interests in land), that the plans for the system be in accord with sound engineering practices and be such as will achieve the purposes for which the system was authorized, and that the borrower agree to account in full in regard to all disbursements of borrowed [funds](/usc/43/1602.md?p=k) and to return at once for application toward amortization of the loan all [funds](/usc/43/1602.md?p=k) which are not expended in the construction of the distribution and drainage system. Every organization contracting for repayment of a loan under [sections 421a to 421h](/usc/43/421a..421h.md) of this title shall operate and maintain its distribution and drainage works in conformity with reasonable contractual requirements determined to be appropriate for the protection of the United States. The [Secretary](/usc/43/31b.md?p=7) is hereby authorized to reconvey to borrowers all lands or interests in lands and distribution works transferred to the United States under the provisions of [sections 421a to 421h](/usc/43/421a..421h.md) of this title: Provided, That any reconveyance shall be upon the condition that the repayment contract of the borrower be amended to include such provisions as the [Secretary](/usc/43/31b.md?p=7) shall deem necessary or proper to provide assurance of and security for prompt repayment of the loan. The head of any department or agency of the Government within whose administrative jurisdiction are lands owned by the United States the use of which is reasonably necessary for the construction, operation, and maintenance of distribution and drainage works under [sections 421a to 421h](/usc/43/421a..421h.md) of this title may grant to a borrower or prospective borrower under [sections 421a to 421h](/usc/43/421a..421h.md) of this title revocable permission for the use thereof in like manner as under sections 79[^1] and 524 of [title 16](/usc/16.md), [sections 323 to 328](/usc/25/323..328.md) of title 25, [section 8124 of title 38](/usc/38/8124.md), or sections [931a to 931d](/usc/43/931a..931d.md), [946 to 950](/usc/43/946..950.md), [956](/usc/43/956.md), and [959](/usc/43/959.md)[^1] of this title, or any other similar Act which is applicable to the lands involved: Provided, That no such permission shall be granted in the case of lands being administered for national park, national monument, or wildlife purposes. # §421d. Effect on existing laws Except as otherwise provided in [sections 421a to 421h](/usc/43/421a..421h.md) of this title, the provisions of the Federal reclamation laws, and Acts amendatory thereto, are continued in full force and effect. # §421e. Municipal and industrial water supply delivery and distribution; allocation of loan funds; loan repayment contract requirements; rate of interest Unless otherwise provided in the Act authorizing construction of the project, the delivery and distribution of municipal and industrial water supplies shall be deemed to be an authorized project purpose under [sections 421a to 421h](/usc/43/421a..421h.md) of this title, and where appropriate, an allocation of loan [funds](/usc/43/1602.md?p=k) acceptable to the [Secretary](/usc/43/31b.md?p=7) shall be made between irrigation and municipal and industrial purposes. Loan repayment contracts shall require that the borrower pay interest on that portion of the unamortized loan obligation (including interest during construction) allocated in each year to municipal and industrial purposes at the rate provided in the Act authorizing the project, or absent such an authorized rate, at a rate determined by the [Secretary](/usc/43/31b.md?p=7) of the Treasury as of the beginning of the fiscal year in which the contract, or contract amendment entered into pursuant to [section 421f of this title](/usc/43/421f.md), is executed, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations which are neither due nor callable for redemption for fifteen years from date of issue, and by adjusting such average rate to the nearest one-eighth of 1 per centum. # §421f. Existing loan contracts; negotiation by Secretary of amendments The [Secretary](/usc/43/31b.md?p=7) is hereby authorized to negotiate amendments to existing water service and irrigation distribution system loan contracts to conform said contracts to the provisions of [sections 421a to 421h](/usc/43/421a..421h.md) of this title. # §421g. Existing rights unaffected Nothing in [sections 421a to 421h](/usc/43/421a..421h.md) of this title shall be construed to repeal or limit the procedural and substantive requirements of sections [372](/usc/43/372.md) and [383](/usc/43/383.md) of this title. # §421h. Procedural and substantive requirements applicable to works financed by loans pursuant to sections 421a to 421h of this title Works financed by loans made under [sections 421a to 421h](/usc/43/421a..421h.md) of this title shall be subject to all procedural and substantive requirements of the Fish and Wildlife Coordination Act [[16 U.S.C. 661](/usc/16/661.md) et seq.], the Federal Water Pollution Control Act, as amended [[33 U.S.C. 1251](/usc/33/1251.md) et seq.], and the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](/usc/42/4321.md) et seq.].