Rural Water Supply Program Fact Sheet
The Interim Final Rule for implementing the Rural Water Supply Program has been published in the Federal Register. This Interim Final Rule establishes programmatic criteria for the Reclamation Rural Water Supply Program, including criteria governing prioritization, eligibility, and the evaluation of appraisal investigations and feasibility studies.
This rule is intended to define for potential participants how the Rural Water Supply Program authorized by the Act will be administered.
Reclamation is seeking comments on the rule and comments are due by January 16, 2009 at 11:59 P.M. EST. Since it was published as an Interim Final Rule, the Rule becomes active after thirty days on December 17, 2008.
What is the Rural Water Supply Program
The Rural Water Supply Program was authorized by Title I of P.L. 109-451, The Rural Water Supply Act of 2006 (Act). This Program will enable Reclamation to be involved in the planning, design and prioritization of projects to develop and deliver potable water supplies to rural communities in the Western United States.
Under the Program, States (or a political subdivision of a state), Indian tribes and entities created under state law with water management authority can seek financial and technical assistance to undertake appraisal investigations and feasibility studies to explore potable water supply needs and options for addressing those needs. While the Act provides Reclamation the authority to undertake appraisal investigations and feasibility studies, it does not provide authority to undertake the construction of water delivery facilities recommended for development under the Program. Those require a specific Act of Congress.
A rural water supply project means a project that is designed to serve a community or group of communities, including Indian tribes and tribal organizations, each of which has a population of no more than 50,000 people, with domestic, industrial, municipal, and residential water. It does not include commercial irrigation or major impoundment structures.
Federal Assistance for Planning Rural Water Projects
Assistance is available for appraisal investigations and feasibility studies.
An appraisal investigation is an analysis of domestic, municipal, and industrial water supply problems, needs, and opportunities primarily using existing data and includes a preliminary assessment of alternatives to determine if there is at least one viable alternative that warrants a more detailed investigation.
Eligible entities can participate in the Program in three ways:
- They can work with Reclamation to complete an appraisal investigation or feasibility study;
- They can seek a grant or enter into a cooperative agreement with Reclamation to complete an appraisal investigation or feasibility study themselves or through their own contractor (both in cooperation with Reclamation); or
- They can submit an appraisal investigation or feasibility study prepared without any financial or technical support from Reclamation for review and inclusion in the Program.
Appraisal investigations will provide a recommendation on whether a feasibility study should be initiated. Reclamation will pay 100-percent up to $200,000 and 50-percent for all costs above that amount.
A feasibility study is generally completed following the completion and recommendation of an appraisal investigation. It is a detailed investigation requiring the acquisition of primary data, and an analysis of a reasonable range of alternatives, including a preferred alternative. A technical and economic analysis is also completed.
Funding for feasibility studies is cost-shared. Reclamation will pay 50-percent and the non-Federal entity will pay 50-percent. Based upon a determination of financial hardship, Reclamation's share of the feasibility study may be increased.
Reclamation has sought $1 million in its FY 2009 budget request and is awaiting completion of the FY 2009 Congressional appropriations process to determine the actual level of funding. Reclamation expects there to be significantly greater demand for the limited appropriated funds than will be available. In response, Reclamation will use the prioritization criteria established in the interim final rule to select those studies and projects to undertake each year.
Construction
The Act, and this interim final rule, does not impact projects that were authorized for construction prior to its enactment.
Based upon the findings of the appraisal investigation and feasibility studies, Reclamation will make a recommendation to Congress. Included in this recommendation are whether the project should be authorized and the appropriate non-Federal share of construction costs.
In general, the non-Federal project entities must pay 100 percent of all costs to operate, maintain and repair constructed projects. Further, under the Act, the non-Federal entities will pay a minimum of 25-percent of the capital construction costs and could pay more as determined in an analysis of their capability to pay. Indian tribe project beneficiaries may have all or part of their non-Federal construction costs deferred based upon their capability to pay.
Next Steps
Since this rule is being published as an Interim Final Rule, it becomes effective thirty days after publication. Comments will be accepted for up to sixty days from publication in the Federal Register.
Reclamation is also developing the requirements and guidelines for what analysis, data and information needs to be included in appraisal investigations and feasibility studies that are to be prepared under the Rural Water Supply Program.
Dependent upon funding, Reclamation will issue a request for proposal in early spring, 2009, to solicit projects for appraisal investigations and feasibility studies.
Last updated: 12/4/08