---
kind: "section"
citation: "43 U.S.C. § 2404"
title: "43"
title_heading: "Public Lands"
number: "2404"
heading: "Appraisal investigations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/43/2404"
units:
  - "Chapter 42 — Rural Water Supply"
  - "Subchapter I — Reclamation Rural Water Supply"
---

# §2404. Appraisal investigations

- (a) **In general—** On request of a [non-Federal project entity](/usc/43/2401.md?p=5) with respect to a proposed [rural water supply project](/usc/43/2401.md?p=9-A) that meets the eligibility criteria published under [section 2402(c) of this title](/usc/43/2402.md?p=c) and subject to the availability of appropriations, the [Secretary](/usc/43/2401.md?p=10) may—
  - (1) receive and review an appraisal investigation that is—
    - (A) developed by the [non-Federal project entity](/usc/43/2401.md?p=5), with or without support from the [Secretary](/usc/43/2401.md?p=10); and
    - (B) submitted to the [Secretary](/usc/43/2401.md?p=10) by the [non-Federal project entity](/usc/43/2401.md?p=5);
  - (2) conduct an appraisal investigation; or
  - (3) provide a grant to, or enter into a cooperative agreement with, the [non-Federal project entity](/usc/43/2401.md?p=5) to conduct an appraisal investigation, if the [Secretary](/usc/43/2401.md?p=10) determines that—
    - (A) the [non-Federal project entity](/usc/43/2401.md?p=5) is qualified to complete the appraisal investigation in accordance with the criteria published under [section 2402(c) of this title](/usc/43/2402.md?p=c); and
    - (B) using the [non-Federal project entity](/usc/43/2401.md?p=5) to conduct the appraisal investigation is a cost-effective alternative for completing the appraisal investigation.
- (b) **Deadline—** An appraisal investigation conducted under [subsection (a)](#a) shall be scheduled for completion not later than 2 years after the date on which the appraisal investigation is initiated.
- (c) **Appraisal report—** In accordance with [subsection (f)](#f), after an appraisal investigation is submitted to the [Secretary](/usc/43/2401.md?p=10) under [subsection (a)(1)](#a-1) or completed under paragraph [(2)](#a-2) or [(3)](#a-3) of subsection (a), the [Secretary](/usc/43/2401.md?p=10) shall prepare an appraisal report that—
  - (1) considers—
    - (A) whether the project meets—
      - (i) the appraisal criteria developed under [subsection (d)](#d); and
      - (ii) the eligibility criteria developed under [section 2402(c) of this title](/usc/43/2402.md?p=c);
    - (B) whether viable water supplies and water rights exist to supply the project, including all practicable water sources such as lower quality waters, nonpotable waters, and water reuse-based water supplies;
    - (C) whether the project has a positive effect on public health and safety;
    - (D) whether the project will meet water demand, including projected future needs;
    - (E) the extent to which the project provides environmental benefits, including source water protection;
    - (F) whether the project applies a regional or watershed perspective and promotes benefits in the region in which the project is carried out;
    - (G) whether the project—
      - (i)
        - (I) implements an integrated resources management approach; or
        - (II) enhances water management flexibility, including providing for—
          - (aa) local control to manage water supplies under varying water supply conditions; and
          - (bb) participation in water banking and markets for domestic and environmental purposes; and
      - (ii) promotes long-term protection of water supplies;
    - (H) preliminary cost estimates for the project; and
    - (I) whether the [non-Federal project entity](/usc/43/2401.md?p=5) has the capability to pay 100 percent of the costs associated with the operations, maintenance, and replacement of the facilities constructed or developed as part of the [rural water supply project](/usc/43/2401.md?p=9-A); and
  - (2) provides recommendations on whether a feasibility study should be initiated under [section 2405(a) of this title](/usc/43/2405.md?p=a).
- (d) **Appraisal criteria—**
  - (1) **In general—** Not later than 1 year after December 22, 2006, the [Secretary](/usc/43/2401.md?p=10) shall promulgate criteria (including appraisal factors listed under [subsection (c)](#c)) against which the appraisal investigations shall be assessed for completeness and appropriateness for a feasibility study.
  - (2) **Inclusions—** To minimize the cost of a [rural water supply project](/usc/43/2401.md?p=9-A) to a [non-Federal project entity](/usc/43/2401.md?p=5), the [Secretary](/usc/43/2401.md?p=10) shall include in the criteria methods to scale the level of effort needed to complete the appraisal investigation relative to the total size and cost of the proposed [rural water supply project](/usc/43/2401.md?p=9-A).
- (e) **Review of appraisal investigation—**
  - (1) **In general—** Not later than 90 days after the date of submission of an appraisal investigation under paragraph [(1)](#a-1) or [(3)](#a-3) of subsection (a), the [Secretary](/usc/43/2401.md?p=10) shall provide to the non-Federal entity that conducted the investigation a determination of whether the investigation has included the information necessary to determine whether the proposed [rural water supply project](/usc/43/2401.md?p=9-A) satisfies the criteria promulgated under [subsection (d)](#d).
  - (2) **No satisfaction of criteria—** If the [Secretary](/usc/43/2401.md?p=10) determines that the appraisal investigation submitted by a non-Federal entity does not satisfy the criteria promulgated under [subsection (d)](#d), the [Secretary](/usc/43/2401.md?p=10) shall inform the non-Federal entity of the reasons why the appraisal investigation is deficient.
  - (3) **Responsibility of Secretary—** If an appraisal investigation as first submitted by a non-Federal entity does not provide all necessary information, as defined by the [Secretary](/usc/43/2401.md?p=10), the [Secretary](/usc/43/2401.md?p=10) shall have no obligation to conduct further analysis until the [non-Federal project entity](/usc/43/2401.md?p=5) submitting the appraisal study conducts additional investigation and resubmits the appraisal investigation under this subsection.
- (f) **Appraisal report—** Once the [Secretary](/usc/43/2401.md?p=10) has determined that an investigation provides the information necessary under [subsection (e)](#e), the [Secretary](/usc/43/2401.md?p=10) shall—
  - (1) complete the appraisal report required under [subsection (c)](#c);
  - (2) make available to the public, on request, the appraisal report prepared under this subchapter; and
  - (3) promptly publish in the Federal Register a notice of the availability of the results.
- (g) **Costs—**
  - (1) **Federal share—** The Federal share of an appraisal investigation conducted under [subsection (a)](#a) shall be 100 percent of the total cost of the appraisal investigation, up to $200,000.
  - (2) **Non-Federal share—**
    - (A) **In general—** Except as provided in [subparagraph (B)](#g-2-B), if the cost of conducting an appraisal investigation is more than $200,000, the non-Federal share of the costs in excess of $200,000 shall be 50 percent.
    - (B) **Exception—** The [Secretary](/usc/43/2401.md?p=10) may reduce the non-Federal share required under [subparagraph (A)](#g-2-A) if the [Secretary](/usc/43/2401.md?p=10) determines that there is an overwhelming Federal interest in the appraisal investigation.
    - (C) **Form—** The non-Federal share under [subparagraph (A)](#g-2-A) may be in the form of any in-kind services that the [Secretary](/usc/43/2401.md?p=10) determines would contribute substantially toward the conduct and completion of the appraisal investigation.
- (h) **Consultation; identification of funding sources—** In conducting an appraisal investigation under [subsection (a)(2)](#a-2), the [Secretary](/usc/43/2401.md?p=10) shall—
  - (1) consult and cooperate with the [non-Federal project entity](/usc/43/2401.md?p=5) and appropriate [State](/usc/43/31b.md?p=8), tribal, regional, and local authorities;
  - (2) consult with the heads of appropriate Federal agencies to—
    - (A) ensure that the proposed [rural water supply project](/usc/43/2401.md?p=9-A) does not duplicate a project carried out under the authority of the agency head; and
    - (B) if a duplicate project is being carried out, identify the authority under which the duplicate project is being carried out; and
  - (3) identify what funding sources are available for the proposed [rural water supply project](/usc/43/2401.md?p=9-A).

## Source credit

(Pub. L. 109–451, title I, § 105, Dec. 22, 2006, 120 Stat. 3349.)