The Secretary, in cooperation with non-Federal project entities and consistent with this subchapter, may carry out a rural water supply program in Reclamation States to-
(1) investigate and identify opportunities to ensure safe and adequate rural water supply projects for domestic, municipal, and industrial use in small communities and rural areas of the Reclamation States;
(2) plan the design and construction, through the conduct of appraisal investigations and feasibility studies, of rural water supply projects in Reclamation States; and
(3) oversee, as appropriate, the construction of rural water supply projects in Reclamation States that are recommended by the Secretary in a feasibility report developed pursuant to section 2405 of this title and subsequently authorized by Congress.
Any activity carried out under this subchapter shall be carried out in cooperation with a qualifying non-Federal project entity, consistent with this subchapter.
Not later than 1 year after December 22, 2006, the Secretary shall, consistent with this subchapter, develop and publish in the Federal Register criteria for-
(1) determining the eligibility of a rural community for assistance under the Program; and
(2) prioritizing requests for assistance under the Program.
The criteria developed under subsection (c) shall take into account such factors as whether-
(1) a rural water supply project-
(A) serves-
(i) rural areas and small communities; or
(ii) Indian tribes; or
(B) promotes and applies a regional or watershed perspective to water resources management;
(2) there is an urgent and compelling need for a rural water supply project that would-
(A) improve the health or aesthetic quality of water;
(B) result in continuous, measurable, and significant water quality benefits; or
(C) address current or future water supply needs;
(3) a rural water supply project helps meet applicable requirements established by law; and
(4) a rural water supply project is cost effective.
The Secretary may include-
(1) to the extent that connection provides a reliable water supply, a connection to pre-existing infrastructure (including impoundments and conveyance channels) as part of a rural water supply project; and
(2) notwithstanding the limitation on population under section 2401(9)(A) of this title, a town or community with a population in excess of 50,000 inhabitants in an area served by a rural water supply project if, at the discretion of the Secretary, the town or community is considered to be a critical partner in the rural supply project.
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