(a) In generalThe 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.(b) Non-Federal project entityAny activity carried out under this subchapter shall be carried out in cooperation with a qualifying non-Federal project entity, consistent with this subchapter.
(c) Eligibility criteriaNot 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.(d) FactorsThe 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(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.(e) InclusionsThe 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. Pub. L. 109-451, title I, §103, Dec. 22, 2006, 120 Stat. 3347.