Sec. 135. Eligibility for assistance
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The following nonfederally owned projects that contribute to a safe, adequate water supply for domestic, agricultural, environmental, or municipal and industrial use may be carried out using assistance made available under this subtitle: A project for the reclamation and reuse of wastewater, and naturally impaired ground and surface waters, which has a completed feasibility study that complies with Reclamation standards. A new water infrastructure facility project, including a water conduit, pipeline, canal, pumping, power, and associated facilities or a water efficiency project.
A project for accelerated repair and replacement of an aging water distribution facility. A brackish or sea water desalination project. A project for groundwater replenishment, groundwater storage, or surface storage. A combination of projects, each of which is eligible under paragraphs
(1)through (5), for which an eligible entity or group of eligible entities submits a single application. For purposes of this subtitle, an eligible activity with respect to an eligible project under subsection
(a)includes the cost of— development-phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities; construction, reconstruction, rehabilitation, and replacement activities; the acquisition of real property (including water rights, land relating to the project, and improvements to land), environmental mitigation, construction contingencies, and acquisition of equipment subject to subsection (c); capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses, and other carrying costs during construction; and refinancing interim construction funding, existing long-term project obligations, or a secured loan or loan guarantee made under this subtitle. The proceeds from Federal credit instruments made available under this subtitle may only be used to acquire non-Federal land or interest in land from a willing seller, when the seller does not contest the purchase or price paid.