---
kind: "section"
citation: "43 U.S.C. § 2904"
title: "43"
title_heading: "Public Lands"
number: "2904"
heading: "Eligibility criteria"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/43/2904"
units:
  - "Chapter 47 — Reclamation Title Transfer"
---

# §2904. Eligibility criteria

- (a) **Establishment—** The [Secretary](/usc/43/2902.md?p=9) shall establish criteria for determining whether a [facility](/usc/43/2902.md?p=3-A) is eligible for conveyance under this chapter.
- (b) **Minimum requirements—**
  - (1) **Agreement of qualifying entity—** The criteria established under [subsection (a)](#a) shall include a requirement that a [qualifying entity](/usc/43/2902.md?p=5) shall agree—
    - (A) to accept title to the [eligible facility](/usc/43/2902.md?p=2);
    - (B) to use the [eligible facility](/usc/43/2902.md?p=2) for substantially the same purposes for which the [eligible facility](/usc/43/2902.md?p=2) is being used at the time the [Secretary](/usc/43/2902.md?p=9) evaluates the potential transfer; and
    - (C) to provide, as consideration for the [assets](/usc/43/505a.md?p=1-A) to be conveyed, compensation to the [reclamation](/usc/43/2902.md?p=6) fund established by [section 391 of this title](/usc/43/391.md), in an amount that is the equivalent of the net present value of any repayment obligation to the United States or other income stream that the United States derives from the [eligible facility](/usc/43/2902.md?p=2) to be transferred, as of the date of the transfer.
  - (2) **Determinations of Secretary—** The criteria established under [subsection (a)](#a) shall include a requirement that the [Secretary](/usc/43/2902.md?p=9) shall—
    - (A) be able to enter into an agreement with the [qualifying entity](/usc/43/2902.md?p=5) with respect to the legal, institutional, and financial arrangements relating to the conveyance;
    - (B) determine that the proposed transfer—
      - (i) would not have an unmitigated significant effect on the environment;
      - (ii) is consistent with the responsibilities of the [Secretary](/usc/43/2902.md?p=9)—
        - (I) in the role as trustee for federally recognized Indian Tribes; and
        - (II) to ensure compliance with any applicable international and Tribal treaties and agreements and interstate compacts and agreements;
      - (iii) is in the financial interest of the United States;
      - (iv) protects the public aspects of the [eligible facility](/usc/43/2902.md?p=2), including water rights managed for public purposes, such as flood control or fish and wildlife;
      - (v) complies with all applicable Federal and [State](/usc/43/31b.md?p=8) law; and
      - (vi) will not result in an adverse impact on fulfillment of existing water delivery obligations consistent with historical operations and applicable contracts; and
    - (C) if the [eligible facility](/usc/43/2902.md?p=2) proposed to be transferred is a dam or diversion works (not including canals or other project features that receive or convey water from the diverting works) diverting water from a water body containing a species listed as a threatened species or an endangered species or critical habitat under the Endangered Species Act of 1973 ([16 U.S.C. 1531](/usc/16/1531.md) et seq.), determine that—
      - (i) the [eligible facility](/usc/43/2902.md?p=2) continues to comply with the Endangered Species Act of 1973 ([16 U.S.C. 1531](/usc/16/1531.md) et seq.) in a manner that provides no less protection to the listed species as existed under Federal ownership; and
      - (ii) the [eligible facility](/usc/43/2902.md?p=2) is not part of the Central Valley Project in the [State](/usc/43/31b.md?p=8) of California.
  - (3) **Status of reclamation land—** The criteria established under [subsection (a)](#a) shall require that any land to be conveyed out of Federal ownership under this chapter is—
    - (A) land acquired by the [Secretary](/usc/43/2902.md?p=9); or
    - (B) land withdrawn by the [Secretary](/usc/43/2902.md?p=9), only if—
      - (i) the [Secretary](/usc/43/2902.md?p=9) determines in writing that the withdrawn land is encumbered by [facilities](/usc/43/2902.md?p=3-A) to the extent that the withdrawn land is unsuitable for return to the public domain; and
      - (ii) the [qualifying entity](/usc/43/2902.md?p=5) agrees to pay fair market value based on historical or existing uses for the withdrawn land to be conveyed.
- (c) **Hold harmless—** No conveyance under this chapter shall adversely impact applicable Federal power rates, repayment obligations, or other project power uses.

## Source credit

(Pub. L. 116–9, title VIII, § 8004, Mar. 12, 2019, 133 Stat. 806.)

## Notes

### Editorial Notes

### References in Text

The Endangered Species Act of 1973, referred to in subsec. (b)(2)(C), is Pub. L. 93–205, Dec. 28, 1973, 87 Stat. 884, which is classified principally to chapter 35 (§ 1531 et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note set out under section 1531 of Title 16 and Tables.