Exhibit A_2549ss02

§ 3856

TITLE 33—NAVIGATION AND NAVIGABLE WATERS

Oct. 15, 2010, 124 Stat. 3023, which enacted this chapter
and repealed chapter 37 (§ 2401 et seq.) of this title. For
complete classification of title X to the Code, see
Tables.

§ 3856. Referrals for appropriate action by foreign country
Notwithstanding sections 3851, 3852, 3853, and
3855 of this title, if a violation of the Convention
is committed by a vessel registered in or of the
nationality of a country that is a party to the
Convention, or by a vessel operated under the
authority of a country that is a party to the
Convention, the Secretary, acting in coordination with the Secretary of State, may refer the
matter to the government of the country of the
vessel’s registry or nationality, or under whose
authority the vessel is operating, for appropriate action, rather than taking the actions
otherwise required or authorized by this subchapter.
(Pub. L. 111–281, title X, § 1046, Oct. 15, 2010, 124
Stat. 3031.)
REFERENCES IN TEXT
This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle D (§§ 1041–1048) of
title X of Pub. L. 111–281, Oct. 15, 2010, 124 Stat. 3029,
which enacted this subchapter and repealed chapter 37
(§ 2401 et seq.) of this title. For complete classification
of subtitle D to the Code, see Tables.

§ 3857. Remedies not affected
(a) In general
Nothing in this chapter limits, denies,
amends, modifies, or repeals any other remedy
available to the United States.
(b) Relationship to State and local law
Nothing in this chapter limits, denies,
amends, modifies, or repeals any rights under
existing law, of any State, territory, or possession of the United States, or any political subdivision thereof, to regulate any antifouling system. Compliance with the requirements of a
State, territory, or possession of the United
States, or political subdivision thereof related
to antifouling paint or any other antifouling
system does not relieve any person of the obligation to comply with this chapter.
(Pub. L. 111–281, title X, § 1047, Oct. 15, 2010, 124
Stat. 3031.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
‘‘this title’’, meaning title X of Pub. L. 111–281, Oct. 15,
2010, 124 Stat. 3023, which enacted this chapter and repealed chapter 37 (§ 2401 et seq.) of this title. For complete classification of title X to the Code, see Tables.

CHAPTER 52—WATER INFRASTRUCTURE
FINANCE AND INNOVATION
Sec.

3901.
3902.
3903.
3904.
3905.
3906.
3907.
3908.

Definitions.
Authority to provide assistance.
Applications.
Eligible entities.
Projects eligible for assistance.
Activities eligible for assistance.
Determination of eligibility and project selection.
Secured loans.

Page 814

Sec.

3909.
3910.
3911.
3912.
3913.
3914.

Program administration.
State, tribal, and local permits.
Regulations.
Funding.
Reports on pilot program implementation.
Requirements.

§ 3901. Definitions
In this chapter:
(1) Administrator
The term ‘‘Administrator’’ means the Administrator of the Environmental Protection
Agency.
(2) Community water system
The term ‘‘community water system’’ has
the meaning given the term in section 300f of
title 42.
(3) Federal credit instrument
The term ‘‘Federal credit instrument’’
means a secured loan or loan guarantee authorized to be made available under this chapter with respect to a project.
(4) Investment-grade rating
The term ‘‘investment-grade rating’’ means
a rating of BBB minus, Baa3, bbb minus, BBB
(low), or higher assigned by a rating agency to
project obligations.
(5) Lender
(A) In general
The term ‘‘lender’’ means any non-Federal
qualified institutional buyer (as defined in
section 230.144A(a) of title 17, Code of Federal Regulations (or a successor regulation),
known as Rule 144A(a) of the Securities and
Exchange Commission and issued under the
Securities Act of 1933 (15 U.S.C. 77a et seq.)).
(B) Inclusions
The term ‘‘lender’’ includes—
(i) a qualified retirement plan (as defined
in section 4974(c) of title 26) that is a qualified institutional buyer; and
(ii) a governmental plan (as defined in
section 414(d) of title 26) that is a qualified
institutional buyer.
(6) Loan guarantee
The term ‘‘loan guarantee’’ means any guarantee or other pledge by the Secretary or the
Administrator to pay all or part of the principal of, and interest on, a loan or other debt
obligation issued by an obligor and funded by
a lender.
(7) Obligor
The term ‘‘obligor’’ means an eligible entity
that is primarily liable for payment of the
principal of, or interest on, a Federal credit
instrument.
(8) Project obligation
(A) In general
The term ‘‘project obligation’’ means any
note, bond, debenture, or other debt obligation issued by an obligor in connection with
the financing of a project.
(B) Exclusion
The term ‘‘project obligation’’ does not include a Federal credit instrument.

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TITLE 33—NAVIGATION AND NAVIGABLE WATERS

(9) Rating agency
The term ‘‘rating agency’’ means a credit
rating agency registered with the Securities
and Exchange Commission as a nationally recognized statistical rating organization (as defined in section 78c(a) of title 15).
(10) Secured loan
The term ‘‘secured loan’’ means a direct
loan or other debt obligation issued by an obligor and funded by the Secretary or Administrator, as applicable, in connection with the
financing of a project under section 3908 of
this title.
(11) State
The term ‘‘State’’ means—
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the
United States.
(12) State infrastructure financing authority
The term ‘‘State infrastructure financing
authority’’ means the State entity established
or designated by the Governor of a State to receive a capitalization grant provided by, or
otherwise carry out the requirements of, title
VI of the Federal Water Pollution Control Act
(33 U.S.C. 1381 et.1 seq.) or section 300j–12 of
title 42.
(13) Subsidy amount
The term ‘‘subsidy amount’’ means the
amount of budget authority sufficient to cover
the estimated long-term cost to the Federal
Government of a Federal credit instrument, as
calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays
in accordance with the Federal Credit Reform
Act of 1990 (2 U.S.C. 661 et seq.).
(14) Substantial completion
The term ‘‘substantial completion’’, with respect to a project, means the earliest date on
which a project is considered to perform the
functions for which the project is designed.
(15) Treatment works
The term ‘‘treatment works’’ has the meaning given the term in section 212 of the Federal Water Pollution Control Act (33 U.S.C.
1292).
(Pub. L. 113–121, title V, § 5022, June 10, 2014, 128
Stat. 1332.)
REFERENCES IN TEXT
The Securities Act of 1933, referred to in par. (5)(A),
is title I of act May 27, 1933, ch. 38, 48 Stat. 74, which
is classified generally to subchapter I (§ 77a et seq.) of
chapter 2A of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section
77a of Title 15 and Tables.
The Federal Water Pollution Control Act, referred to
in par. (12), is act June 30, 1948, ch. 758, as amended generally by Pub. L. 92–500, § 2, Oct. 18, 1972, 86 Stat. 816,
which is classified generally to chapter 26 (§ 1251 et seq.)
of this title. Title VI of the Act is classified generally
to subchapter VI (§ 1381 et seq.) of chapter 26 of this
1 So

in original. The period probably should not appear.

§ 3903

title. For complete classification of this Act to the
Code, see Short Title note set out under section 1251 of
this title and Tables.
The Federal Credit Reform Act of 1990, referred to in
par. (13), is title V of Pub. L. 93–344, as added by Pub.
L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat.
1388–609, which is classified generally to subchapter III
(§ 661 et seq.) of chapter 17A of Title 2, The Congress.
For complete classification of this Act to the Code, see
Short Title note set out under section 621 of Title 2 and
Tables.
SHORT TITLE
Pub. L. 113–121, title V, § 5021, June 10, 2014, 128 Stat.
1332, provided that: ‘‘This subtitle [subtitle C
(§§ 5021–5035) of title V of Pub. L. 113–121, enacting this
chapter] may be cited as the ‘Water Infrastructure Finance and Innovation Act of 2014’.’’
‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3902. Authority to provide assistance
(a) In general
The Secretary and the Administrator may provide financial assistance under this chapter to
carry out pilot projects, which shall be selected
to ensure a diversity of project types and geographical locations.
(b) Responsibility
(1) Secretary
The Secretary shall carry out all pilot
projects under this chapter that are eligible
projects under section 3905(1) of this title.
(2) Administrator
The Administrator shall carry out all pilot
projects under this chapter that are eligible
projects under paragraphs (2), (3), (4), (5), (6),
and (8) of section 3905 of this title.
(3) Other projects
The Secretary or the Administrator, as applicable, may carry out eligible projects under
paragraph (7) or (9) of section 3905 of this title.
(Pub. L. 113–121, title V, § 5023, June 10, 2014, 128
Stat. 1333.)
‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3903. Applications
(a) In general
To receive assistance under this chapter, an
eligible entity shall submit to the Secretary or
the Administrator, as applicable, an application
at such time, in such manner, and containing
such information as the Secretary or the Administrator may require.
(b) Combined projects
In the case of an eligible project described in
paragraph (8) or (9) of section 3905 of this title,
the Secretary or the Administrator, as applicable, shall require the eligible entity to submit a
single application for the combined group of
projects.
(Pub. L. 113–121, title V, § 5024, June 10, 2014, 128
Stat. 1333.)

§ 3904

TITLE 33—NAVIGATION AND NAVIGABLE WATERS
‘‘SECRETARY’’ DEFINED

Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3904. Eligible entities
The following entities are eligible to receive
assistance under this chapter:
(1) A corporation.
(2) A partnership.
(3) A joint venture.
(4) A trust.
(5) A Federal, State, or local governmental
entity, agency, or instrumentality.
(6) A tribal government or consortium of
tribal governments.
(7) A State infrastructure financing authority.
(Pub. L. 113–121, title V, § 5025, June 10, 2014, 128
Stat. 1334.)
§ 3905. Projects eligible for assistance
The following projects may be carried out
with amounts made available under this chapter:
(1) Any project for flood damage reduction,
hurricane and storm damage reduction, environmental restoration, coastal or inland harbor navigation improvement, or inland and intracoastal waterways navigation improvement
that the Secretary determines is technically
sound, economically justified, and environmentally acceptable, including—
(A) a project to reduce flood damage;
(B) a project to restore aquatic ecosystems;
(C) a project to improve the inland and intracoastal waterways navigation system of
the United States; and
(D) a project to improve navigation of a
coastal or inland harbor of the United
States, including channel deepening and
construction of associated general navigation features.
(2) 1 or more activities that are eligible for
assistance under section 1383(c) of this title,
notwithstanding the public ownership requirement under paragraph (1) of that subsection.
(3) 1 or more activities described in section
300j–12(a)(2) of title 42.
(4) A project for enhanced energy efficiency
in the operation of a public water system or a
publicly owned treatment works.
(5) A project for repair, rehabilitation, or replacement of a treatment works, community
water system, or aging water distribution or
waste collection facility (including a facility
that serves a population or community of an
Indian reservation).
(6) A brackish or sea water desalination
project, a managed aquifer recharge project,
or a water recycling project.
(7) Acquisition of real property or an interest in real property—
(A) if the acquisition is integral to a
project described in paragraphs (1) through
(6); or
(B) pursuant to an existing plan that, in
the judgment of the Administrator or the

Page 816

Secretary, as applicable, would mitigate the
environmental impacts of water resources
infrastructure projects otherwise eligible for
assistance under this section.
(8) A combination of projects, each of which
is eligible under paragraph (2) or (3), for which
a State infrastructure financing authority
submits to the Administrator a single application.
(9) A combination of projects secured by a
common security pledge, each of which is eligible under paragraph (1), (2), (3), (4), (5), (6), or
(7), for which an eligible entity, or a combination of eligible entities, submits a single application.
(Pub. L. 113–121, title V, § 5026, June 10, 2014, 128
Stat. 1334.)
‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3906. Activities eligible for assistance
For purposes of this chapter, an eligible activity with respect to an eligible project includes
the cost of—
(1) development-phase activities, including
planning, feasibility analysis (including any
related analysis necessary to carry out an eligible project), revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities;
(2) construction, reconstruction, rehabilitation, and replacement activities;
(3) the acquisition of real property or an interest in real property (including water rights,
land relating to the project, and improvements to land), environmental mitigation (including acquisitions pursuant to section
3905(7) of this title), construction contingencies, and acquisition of equipment; and
(4) capitalized interest necessary to meet
market requirements, reasonably required reserve funds, capital issuance expenses, and
other carrying costs during construction.
(Pub. L. 113–121, title V, § 5027, June 10, 2014, 128
Stat. 1335.)
§ 3907. Determination of eligibility and project
selection
(a) Eligibility requirements
To be eligible to receive financial assistance
under this chapter, a project shall meet the following criteria, as determined by the Secretary
or Administrator, as applicable:
(1) Creditworthiness
(A) In general
The project and obligor shall be creditworthy, which shall be determined by the
Secretary or the Administrator, as applicable.
(B) Considerations
In determining the creditworthiness of a
project and obligor, the Secretary or the Administrator, as applicable, shall take into
consideration relevant factors, including—

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TITLE 33—NAVIGATION AND NAVIGABLE WATERS

(i) the terms, conditions, financial structure, and security features of the proposed
financing;
(ii) the dedicated revenue sources that
will secure or fund the project obligations;
(iii) the financial assumptions upon
which the project is based; and
(iv) the financial soundness and credit
history of the obligor.
(C) Security features
The Secretary or the Administrator, as applicable, shall ensure that any financing for
the project has appropriate security features, such as a rate covenant, supporting
the project obligations to ensure repayment.
(D) Rating opinion letters
(i) Preliminary rating opinion letter
The Secretary or the Administrator, as
applicable, shall require each project applicant to provide, at the time of application, a preliminary rating opinion letter
from at least 1 rating agency indicating
that the senior obligations of the project
(which may be the Federal credit instrument) have the potential to achieve an investment-grade rating.
(ii) Final rating opinion letters
The Secretary or the Administrator, as
applicable, shall require each project applicant to provide, prior to final acceptance and financing of the project, final
rating opinion letters from at least 2 rating agencies indicating that the senior obligations of the project have an investment-grade rating.
(E) Special rule for certain combined
projects
The Administrator shall develop a credit
evaluation process for a Federal credit instrument provided to a State infrastructure
financing authority for a project under section 3905(8) of this title or an entity for a
project under section 3905(9) of this title,
which may include requiring the provision of
a final rating opinion letter from at least 2
rating agencies.
(2) Eligible project costs
(A) In general
Subject to subparagraph (B), the eligible
project costs of a project shall be reasonably
anticipated to be not less than $20,000,000.
(B) Small community water infrastructure
projects
For a project described in paragraph (2) or
(3) of section 3905 of this title that serves a
community of not more than 25,000 individuals, the eligible project costs of a project
shall be reasonably anticipated to be not
less than $5,000,000.
(3) Dedicated revenue sources
The Federal credit instrument for the
project shall be repayable, in whole or in part,
from dedicated revenue sources that also secure the project obligations.
(4) Public sponsorship of private entities
(A) In general
If an eligible project is carried out by an
entity that is not a State or local govern-

§ 3907

ment or an agency or instrumentality of a
State or local government or a tribal government or consortium of tribal governments, the project shall be publicly sponsored.
(B) Public sponsorship
For purposes of this chapter, a project
shall be considered to be publicly sponsored
if the obligor can demonstrate, to the satisfaction of the Secretary or the Administrator, as appropriate, that the project applicant has consulted with the affected
State, local, or tribal government in which
the project is located, or is otherwise affected by the project, and that such government supports the proposed project.
(5) Limitation
No project receiving Federal credit assistance under this chapter may be financed (directly or indirectly), in whole or in part, with
proceeds of any obligation—
(A) the interest on which is exempt from
the tax imposed under chapter 1 of title 26;
or
(B) with respect to which credit is allowable under subpart I or J of part IV of subchapter A of chapter 1 of title 26.
(6) Use of existing financing mechanisms
(A) Notification
For each eligible project for which the Administrator has authority under paragraph
(2) or (3) of section 3902(b) of this title and
for which the Administrator has received an
application for financial assistance under
this chapter, the Administrator shall notify,
not later than 30 days after the date on
which the Administrator receives a complete
application, the applicable State infrastructure financing authority of the State in
which the project is located that such application has been submitted.
(B) Determination
If, not later than 60 days after the date of
receipt of a notification under subparagraph
(A), a State infrastructure financing authority notifies the Administrator that the State
infrastructure financing authority intends
to commit funds to the project in an amount
that is equal to or greater than the amount
requested under the application, the Administrator may not provide any financial assistance for that project under this chapter
unless—
(i) by the date that is 180 days after the
date of receipt of a notification under subparagraph (A), the State infrastructure financing authority fails to enter into an assistance agreement to provide funds for
the project; or
(ii) the financial assistance to be provided by the State infrastructure financing authority will be at rates and terms
that are less favorable than the rates and
terms for financial assistance provided
under this chapter.
(7) Operation and maintenance plan
(A) In general
The Secretary or the Administrator, as applicable, shall determine whether an appli-

§ 3908

TITLE 33—NAVIGATION AND NAVIGABLE WATERS

cant for assistance under this chapter has
developed, and identified adequate revenues
to implement, a plan for operating, maintaining, and repairing the project over the
useful life of the project.
(B) Special rule
An eligible project described in section
3905(1) of this title that has not been specifically authorized by Congress shall not be eligible for Federal assistance for operations
and maintenance.
(b) Selection criteria
(1) Establishment
The Secretary or the Administrator, as applicable, shall establish criteria for the selection of projects that meet the eligibility requirements of subsection (a), in accordance
with paragraph (2).
(2) Criteria
The selection criteria shall include the following:
(A) The extent to which the project is nationally or regionally significant, with respect to the generation of economic and public benefits, such as—
(i) the reduction of flood risk;
(ii) the improvement of water quality
and quantity, including aquifer recharge;
(iii) the protection of drinking water, including source water protection; and
(iv) the support of international commerce.
(B) The extent to which the project financing plan includes public or private financing
in addition to assistance under this chapter.
(C) The likelihood that assistance under
this chapter would enable the project to proceed at an earlier date than the project
would otherwise be able to proceed.
(D) The extent to which the project uses
new or innovative approaches.
(E) The amount of budget authority required to fund the Federal credit instrument
made available under this chapter.
(F) The extent to which the project—
(i) protects against extreme weather
events, such as floods or hurricanes; or
(ii) helps maintain or protect the environment.
(G) The extent to which a project serves
regions with significant energy exploration,
development, or production areas.
(H) The extent to which a project serves
regions with significant water resource challenges, including the need to address—
(i) water quality concerns in areas of regional, national, or international significance;
(ii) water quantity concerns related to
groundwater, surface water, or other water
sources;
(iii) significant flood risk;
(iv) water resource challenges identified
in existing regional, State, or multistate
agreements; or
(v) water resources with exceptional recreational value or ecological importance.
(I) The extent to which the project addresses identified municipal, State, or regional priorities.

Page 818

(J) The readiness of the project to proceed
toward development, including a demonstration by the obligor that there is a reasonable
expectation that the contracting process for
construction of the project can commence
by not later than 90 days after the date on
which a Federal credit instrument is obligated for the project under this chapter.
(K) The extent to which assistance under
this chapter reduces the contribution of Federal assistance to the project.
(3) Special rule for certain combined projects
For a project described in section 3905(8) of
this title, the Administrator shall only consider the criteria described in subparagraphs
(B) through (K) of paragraph (2).
(c) Federal requirements
Nothing in this section supersedes the applicability of other requirements of Federal law (including regulations).
(Pub. L. 113–121, title V, § 5028, June 10, 2014, 128
Stat. 1335.)
‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3908. Secured loans
(a) Agreements
(1) In general
Subject to paragraphs (2) and (3), the Secretary or the Administrator, as applicable,
may enter into agreements with 1 or more obligors to make secured loans, the proceeds of
which shall be used to finance eligible project
costs of any project selected under section 3907
of this title.
(2) Financial risk assessment
Before entering into an agreement under
this subsection for a secured loan, the Secretary or the Administrator, as applicable, in
consultation with the Director of the Office of
Management and Budget and each rating
agency providing a rating opinion letter under
section 3907(a)(1)(D) of this title, shall determine an appropriate capital reserve subsidy
amount for the secured loan, taking into account each such rating opinion letter.
(3) Investment-grade rating requirement
The execution of a secured loan under this
section shall be contingent on receipt by the
senior obligations of the project of an investment-grade rating.
(b) Terms and limitations
(1) In general
A secured loan provided for a project under
this section shall be subject to such terms and
conditions, and contain such covenants, representations, warranties, and requirements
(including requirements for audits), as the
Secretary or the Administrator, as applicable,
determines to be appropriate.
(2) Maximum amount
The amount of a secured loan under this section shall not exceed the lesser of—

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TITLE 33—NAVIGATION AND NAVIGABLE WATERS

(A) an amount equal to 49 percent of the
reasonably anticipated eligible project costs;
and
(B) if the secured loan does not receive an
investment-grade rating, the amount of the
senior project obligations of the project.
(3) Payment
A secured loan under this section—
(A) shall be payable, in whole or in part,
from State or local taxes, user fees, or other
dedicated revenue sources that also secure
the senior project obligations of the relevant
project;
(B) shall include a rate covenant, coverage
requirement, or similar security feature supporting the project obligations; and
(C) may have a lien on revenues described
in subparagraph (A), subject to any lien securing project obligations.
(4) Interest rate
The interest rate on a secured loan under
this section shall be not less than the yield on
United States Treasury securities of a similar
maturity to the maturity of the secured loan
on the date of execution of the loan agreement.
(5) Maturity date
(A) In general
The final maturity date of a secured loan
under this section shall be the earlier of—
(i) the date that is 35 years after the date
of substantial completion of the relevant
project (as determined by the Secretary or
the Administrator, as applicable); and
(ii) if the useful life of the project (as determined by the Secretary or Administrator, as applicable) is less than 35 years,
the useful life the project.
(B) Special rule for State infrastructure financing authorities
The final maturity date of a secured loan
to a State infrastructure financing authority under this section shall be not later than
35 years after the date on which amounts are
first disbursed.
(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 or the Administrator, as applicable, 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.
(9) Maximum Federal involvement
(A) In general
Except as provided in subparagraph (B),
for each project for which assistance is pro-

§ 3908

vided under this chapter, the total amount
of Federal assistance shall not exceed 80 percent of the total project cost.
(B) Exceptions
Subparagraph (A) shall not apply to any
rural water project—
(i) that is authorized to be carried out by
the Secretary of the Interior;
(ii) that includes among its beneficiaries
a federally recognized Indian tribe; and
(iii) for which the authorized Federal
share of the total project costs is greater
than the amount described in subparagraph (A).
(c) Repayment
(1) Schedule
The Secretary or the Administrator, as applicable, 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.
(2) Commencement
(A) In general
Scheduled loan repayments 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 (as determined by the Secretary or
Administrator, as applicable).
(B) Special rule for State infrastructure financing authorities
Scheduled loan repayments of principal or
interest on a secured loan to a State infrastructure financing authority under this
chapter shall commence not later than 5
years after the date on which amounts are
first disbursed.
(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 generate sufficient revenues to pay the scheduled loan repayments
of principal and interest on the secured loan,
the Secretary or the Administrator, as applicable, subject to subparagraph (C), may
allow the obligor to add unpaid principal and
interest to the outstanding balance of the
secured loan.
(B) Interest
Any payment deferred under subparagraph
(A) shall—
(i) continue to accrue interest in accordance with subsection (b)(4) until fully repaid; and
(ii) be scheduled to be amortized over the
remaining term of the secured loan.
(C) Criteria
(i) In general
Any payment deferral under subparagraph (A) shall be contingent on the
project meeting such criteria as the Secretary or the Administrator, as applicable,
may establish.

§ 3909

TITLE 33—NAVIGATION AND NAVIGABLE WATERS

(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 excess revenues that remain after satisfying scheduled debt service requirements
on the project obligations and secured loan
and all deposit requirements under the
terms of any trust agreement, bond resolution, or similar agreement securing project
obligations may be applied annually to prepay a secured loan under this section without penalty.
(B) Use of proceeds of refinancing
A secured loan under this section may be
prepaid at any time without penalty from
the proceeds of refinancing from non-Federal
funding sources.
(d) Sale of secured loans
(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 or the Administrator, as applicable, may sell to another entity or reoffer into the capital markets a secured loan for a project under this section, if
the Secretary or the Administrator, as applicable, 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 or the Administrator,
as applicable, 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 or the Administrator, as applicable, may provide a loan guarantee to a
lender in lieu of making a secured loan under
this section, if the Secretary or the Administrator, as applicable, determines 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 secured loan, except that the rate on the guaranteed loan and any prepayment features shall
be negotiated between the obligor and the
lender, with the consent of the Secretary or
the Administrator, as applicable.
(Pub. L. 113–121, title V, § 5029, June 10, 2014, 128
Stat. 1338.)
‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3909. Program administration
(a) Requirement
The Secretary or the Administrator, as applicable, shall establish a uniform system to serv-

Page 820

ice the Federal credit instruments made available under this chapter.
(b) Fees
(1) In general
The Secretary or the Administrator, as applicable, may collect and spend fees, contingent on authority being provided in appropriations Acts, at a level that is sufficient to
cover—
(A) the costs of services of expert firms retained pursuant to subsection (d); and
(B) all or a portion of the costs to the Federal Government of servicing the Federal
credit instruments provided under this chapter.
(c) Servicer
(1) In general
The Secretary or the Administrator, as applicable, may appoint a financial entity to assist the Secretary or the Administrator in
servicing the Federal credit instruments provided under this chapter.
(2) Duties
A servicer appointed under paragraph (1)
shall act as the agent for the Secretary or the
Administrator, as applicable.
(3) Fee
A servicer appointed under paragraph (1)
shall receive a servicing fee, subject to approval by the Secretary or the Administrator,
as applicable.
(d) Assistance from experts
The Secretary or the Administrator, as applicable, may retain the services, including counsel, of organizations and entities with expertise
in the field of municipal and project finance to
assist in the underwriting and servicing of Federal credit instruments provided under this
chapter.
(e) Applicability of other laws
Section 513 of the Federal Water Pollution
Control Act (33 U.S.C. 1372) applies to the construction of a project carried out, in whole or in
part, with assistance made available through a
Federal credit instrument under this chapter in
the same manner that section applies to a treatment works for which a grant is made available
under that Act [33 U.S.C. 1251 et seq.].
(Pub. L. 113–121, title V, § 5030, June 10, 2014, 128
Stat. 1341.)
REFERENCES IN TEXT
The Federal Water Pollution Control Act, referred to
in subsec. (e), is act June 30, 1948, ch. 758, as amended
generally by Pub. L. 92–500, § 2, Oct. 18, 1972, 86 Stat. 816,
which is classified generally to chapter 26 (§ 1251 et seq.)
of this title. For complete classification of this Act to
the Code, see Short Title note set out under section
1251 of this title and Tables.
‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3910. State, tribal, and local permits
The provision of financial assistance for a
project under this chapter shall not—

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TITLE 33—NAVIGATION AND NAVIGABLE WATERS

(1) relieve any recipient of the assistance of
any obligation to obtain any required State,
local, or tribal permit or approval with respect
to the project;
(2) limit the right of any unit of State, local,
or tribal government to approve or regulate
any rate of return on private equity invested
in the project; or
(3) otherwise supersede any State, local, or
tribal law (including any regulation) applicable to the construction or operation of the
project.
(Pub. L. 113–121, title V, § 5031, June 10, 2014, 128
Stat. 1342.)
§ 3911. Regulations
The Secretary or the Administrator, as applicable, may promulgate such regulations as the
Secretary or Administrator determines to be appropriate to carry out this chapter.
(Pub. L. 113–121, title V, § 5032, June 10, 2014, 128
Stat. 1342.)
‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3912. Funding
(a) In general
There is authorized to be appropriated to each
of the Secretary and the Administrator to carry
out this chapter, to remain available until expended—
(1) $20,000,000 for fiscal year 2015;
(2) $25,000,000 for fiscal year 2016;
(3) $35,000,000 for fiscal year 2017;
(4) $45,000,000 for fiscal year 2018; and
(5) $50,000,000 for fiscal year 2019.
(b) Administrative costs
Of the funds made available to carry out this
chapter, the Secretary or the Administrator, as
applicable, may use for the administration of
this chapter, including for the provision of technical assistance to aid project sponsors in obtaining the necessary approvals for the project,
not more than $2,200,000 for each of fiscal years
2015 through 2019.
(c) Small community water infrastructure
projects
(1) In general
For each fiscal year, the Secretary or the
Administrator, as applicable, shall set aside
not less than 15 percent of the amounts made
available for that fiscal year under this section for small community water infrastructure projects described in section 3907(a)(2)(B)
of this title.
(2) Administration
Any amounts set aside under paragraph (1)
that remain unobligated on June 1 of the fiscal year for which the amounts are set aside
shall be available for obligation by the Secretary or the Administrator, as applicable, for
projects other than small community water
infrastructure projects.
(d) Additional funding
Notwithstanding section 3908(b)(2) of this title,
the Secretary or the Administrator, as applica-

§ 3913

ble, may make available up to 25 percent of the
amounts made available for each fiscal year
under this section for loans in excess of 49 percent of the total project costs.
(Pub. L. 113–121, title V, § 5033, June 10, 2014, 128
Stat. 1342.)
‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3913. Reports on pilot program implementation
(a) Agency reporting
As soon as practicable after each fiscal year
for which amounts are made available to carry
out this chapter, the Secretary and the Administrator shall publish on a dedicated, publicly accessible Internet site—
(1) each application received for assistance
under this chapter; and
(2) a list of the projects selected for assistance under this chapter, including—
(A) a description of each project;
(B) the amount of financial assistance provided for each project; and
(C) the basis for the selection of each
project with respect to the requirements of
this chapter.
(b) Reports to Congress
(1) In general
Not later than 4 years after June 10, 2014, the
Comptroller General of the United States shall
submit to the Committee on Environment and
Public Works of the Senate and the Committee on Transportation and Infrastructure of
the House of Representatives a report summarizing for the projects that are receiving, or
have received, assistance under this chapter—
(A) the applications received for assistance
under this chapter;
(B) the projects selected for assistance
under this chapter, including a description
of the projects and the basis for the selection of those projects with respect to the requirements of this chapter;
(C) the type and amount of financial assistance provided for each project selected
for assistance under this chapter;
(D) the financial performance of each
project selected for assistance under this
chapter, including an evaluation of whether
the objectives of this chapter are being met;
(E) the benefits and impacts of implementation of this chapter, including the public
benefit provided by the projects selected for
assistance under this chapter, including, as
applicable, water quality and water quantity
improvement, the protection of drinking
water, and the reduction of flood risk; and
(F) an evaluation of the feasibility of attracting non-Federal public or private financing for water infrastructure projects as
a result of the implementation of this chapter.
(2) Recommendations
The report under paragraph (1) shall include—
(A) an evaluation of the impacts (if any) of
the limitation under section 3907(a)(5) of this

§ 3914

TITLE 33—NAVIGATION AND NAVIGABLE WATERS

title on the ability of eligible entities to finance water infrastructure projects under
this chapter;
(B) a recommendation as to whether the
objectives of this chapter would be best
served—
(i) by continuing the authority of the
Secretary or the Administrator, as applicable, to provide assistance under this
chapter;
(ii) by establishing a Government corporation or Government-sponsored enterprise to provide assistance in accordance
with this chapter; or
(iii) by terminating the authority of the
Secretary and the Administrator under
this chapter and relying on the capital
markets to fund the types of infrastructure investments assisted by this chapter
without Federal participation; and
(C) any proposed changes to improve the
efficiency and effectiveness of this chapter
in providing financing for water infrastructure projects, taking into consideration the
recommendations made under subparagraphs
(A) and (B).
(Pub. L. 113–121, title V, § 5034, June 10, 2014, 128
Stat. 1343.)

shall make available to the public, on an informal basis, a copy of the request and information
available to the Administrator concerning the
request, and shall allow for informal public
input on the request for at least 15 days prior to
making a finding based on the request. The Administrator shall make the request and accompanying information available by electronic
means, including on the official public Internet
Web site of the Environmental Protection Agency.
(e) International agreements
This section shall be applied in a manner consistent with United States obligations under
international agreements.
(Pub. L. 113–121, title V, § 5035, June 10, 2014, 128
Stat. 1344.)
CHAPTER 53—HARMFUL ALGAL BLOOM AND
HYPOXIA RESEARCH AND CONTROL
Sec.

4001.
4001a.
4002.
4003.
4004.
4005.

‘‘SECRETARY’’ DEFINED
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of this title.

§ 3914. Requirements
(a) In general
Except as provided in subsection (c), none of
the amounts made available under this chapter
may be used for the construction, alteration,
maintenance, or repair of a project eligible for
assistance under this chapter unless all of the
iron and steel products used in the project are
produced in the United States.
(b) Definition of iron and steel products
In this section, the term ‘‘iron and steel products’’ means the following products made primarily of iron or steel: lined or unlined pipes
and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe
clamps and restraints, valves, structural steel,
reinforced precast concrete, and construction
materials.
(c) Application
Subsection (a) shall not apply in any case or
category of cases in which the Administrator
finds that—
(1) applying subsection (a) would be inconsistent with the public interest;
(2) iron and steel products are not produced
in the United States in sufficient and reasonably available quantities and of a satisfactory
quality; or
(3) inclusion of iron and steel products produced in the United States will increase the
cost of the overall project by more than 25 percent.
(d) Waiver
If the Administrator receives a request for a
waiver under this section, the Administrator

Page 822

4006.
4007.
4008.
4009.

Assessments.
Consultation required.
National harmful algal bloom and hypoxia
program.
Comprehensive research plan and action
strategy.
Northern Gulf of Mexico hypoxia.
Great Lakes hypoxia and harmful algal
blooms.
Protection of States’ rights.
Effect on other Federal authority.
Definitions.
Authorization of appropriations.

§ 4001. Assessments
(a) Establishment of Inter-Agency Task Force
The President, through the Committee on Environment and Natural Resources of the National Science and Technology Council, shall establish an Inter-Agency Task Force on Harmful
Algal Blooms and Hypoxia. The Task Force
shall consist of a representative from—
(1) the Department of Commerce (who shall
serve as Chairman of the Task Force);
(2) the Environmental Protection Agency;
(3) the Department of Agriculture;
(4) the Department of the Interior;
(5) the Department of the Navy;
(6) the Department of Health and Human
Services;
(7) the National Science Foundation;
(8) the National Aeronautics and Space Administration;
(9) the Food and Drug Administration;
(10) the Office of Science and Technology
Policy;
(11) the Council on Environmental Quality;
(12) the Centers for Disease Control and Prevention; and
(13) other Federal agencies as the President
considers appropriate.
(b) Assessment of harmful algal blooms
(1) Not later than 12 months after November
13, 1998, the Task Force, in cooperation with the
coastal States, Indian tribes, and local governments, industry (including agricultural organizations), academic institutions, and non-governmental organizations with expertise in coastal
zone management, shall complete and submit to