Volume 86 · 804
Public Law 92–487
To amend the Act of July 4, 1955, as amended, relating to the construction of irrigation distribution systems.
Approved October 13, 1972
Statutory text
AN ACT
To amend the Act of July 4, 1955, as amended, relating to the construction of irrigation distribution systems.
Be it enacted by the Senate and Mouse of Representatives of the United States of America, in Congress assembled,
That the Act of July 4, 1955 (69 Stat. 245), as amended by the Act of May 14, 1956 (70 Stat. 155), is hereby amended to read as follows:
43 USC 371 and note.
“That distribution and drainage systems authorized to be constructed under the Federal reclamation laws may, in lieu of construction by the Secretary of the Interior (referred to in this Act as the ’Secretary’), be constructed by irrigation districts or other public agencies according to plans and specifications approved by the Secretary as provided in this Act. The drainage systems referred to in this Act 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 of natural runoff.
“Sec. 2.
To assist financially in the construction of the aforesaid local distribution and drainage systems by irrigation districts and other public agencies the Secretary is authorized, on application there-for by such irrigation districts or other public agencies, to make funds 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 that the loan can be returned to the United States in accordance with the general repayment provisions of sections 2(d) and
9(d) of the Reclamation Project Act of August 4, 1939, and upon a showing that such district 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 and subject to disposition by him) necessary for the construction, operation, and maintenance of the project. The Secretary shall, upon approval of a loan, including any Joan 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),
Repayment contract.
enter into a repayment contract which includes such provisions as the Secretary 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.
“Irrigation district or other public agency.“
The term ‘irrigation district or other public agency’ shall for the purposes of this Act mean any conservancy district, irrigation district, water users’ organization, or other organization, which is organized under State law and which has capacity to enter into contracts with the United States pursuant to the Federal reclamation laws.
“Sec. 3.
The Secretary 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 and to return at once for application toward amortization of the loan all funds which are not expended in the construction of the distribution and drainage system. Every organization contracting for repayment of a loan under this Act 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 is hereby authorized to reconvey to borrowers
Reconveyance.
all lands or interests in lands and distribution works transferred to the United States under the provisions of this Act: 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 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 this Act may grant to a borrower or prospective borrower under this Act revocable permission for the use thereof in like manner as under the Acts of March 3, 1891, sections 18 to 21 (26 Stat. 1101), as amended (43 U.S.C. 946–949),
January 21, 1895 (28 Stat. 635), as amended (43 U.S.C. 956), February 15, 1901 (31 Stat. 790), as amended (16 U.S.C. 79, 522; 43 U.S.C. 959), February 1, 1905 (33 Stat. 628; 16 U.S.C. 524), March 1, 1921 (41 Stat. 1194; 43 U.S.C. 950), May 9, 1941 (55 Stat. 183; 43 U.S.C. 931a), July 24, 1946, section 7 (60 Stat. 643), as amended (43 U.S.C. 931b), May 31, 1947 (61 Stat. 124; 38 U.S.C. Hi), February 5, 1948
(62 Stat. 17: 25 U.S.C. 323–328), or September 3, 1954 (68 Stat, 1146; 43 U.S.C. 931c–931d), or any other similar Act which is applicable to the lands involved: Provided, That no such permission shall be
Restriction.
granted in the case of lands being administered for national park, national monument, or wildlife purposes.
“Sec. 4.
Except as herein otherwise provided, the provisions of the Federal reclamation laws, and Acts amendatory thereto, are continued
43 USC 371 and note.
Municipal and industrial water supply, delivery.
in full force and effect.
“Sec. 5.
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 tins Act, and where appropriate, an allocation of loan funds acceptable to the Secretary shall be made between irrigation and municipal and industrial purposes. Loan repayment contracts
Loan repayment contract required merits.
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 of the Treasury as of the beginning of the fiscal year in which the contract, or contract amendment entered into pursuant to section 6 hereof, 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.
“Sec. 6.
The Secretary is hereby authorized to negotiate amendments
Existing loans amendatory contracts, negotiation.
to existing water service and irrigation distribution system loan contracts to conform said contracts to the provisions of this Act.
“Sec. 7.
Nothing in this Act shall be construed to repeal or limit the procedural and substantive requirements of section 8 of the Act of
June 17, 1902 (32 Stat. 388).
“Sec. 8.
Works financed by loans made under this Act shall be subject to all procedural and substantive requirements of the Fish
16 USC 661 note.
Post, p. 816.
and Wildlife Coordination Act (48 Stat. 401, as amended); the Federal Water Pollution Control Act, as amended (33 U.S.C. 1151); and the National Environmental Policy Act of 1969 (83 Stat, 852; 42 U.S.C. 4321).”
Approved October 13, 1972.