StacksVerified U.S. regulatory reference

43 CFR §404.39

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
Reclamation will consider the following factors:
  1. (a)Economic factors for the project area, relative to the state average, including:
    1. (1)Per capita income;
    2. (2)Median household income; and
    3. (3)The poverty rate;
  2. (b)The ability of the project sponsor to raise tax revenues or assess fees such as user fees and ad valorum taxes or issue bonds;
  3. (c)The strength of the project sponsor financial statements in comparison to other similar entities over the previous 4 years, including a review of:
    1. (1)Current (includes cash and inventory) and non-current assets (property, plants etc.);
    2. (2)Net Assets (total assets minus total liabilities);
    3. (3)Changes to net assets;
    4. (4)Operating revenues (water and power sales);
    5. (5)Operating expenses (variable costs and depreciation, maintenance and repair);
    6. (6)Cash flow from operating activities (positive value from water sales minus payments to supplies and employees);
    7. (7)Current (current bonds payable and accounts payable) and non-current liabilities (long term debt payable);
    8. (8)Outstanding debts and all other financial obligations;
    9. (9)Collateral/equity as appropriate;
    10. (10)Cash flows from capital and related financing activities (negative value from principle paid on bonds and interest payments);
    11. (11)Net cash flow; and
    12. (12)Any non-operating revenues and expenses;
  4. (d)Funding commitments from non-Federal sources, other than the non-Federal project sponsor, including resources committed by state, county, or local governments;
  5. (e)The existing cost of water and the cost to develop new water supplies in the region; and
  6. (f)The impact of the proposed project on water rates;
  7. (g)The projected impact of the proposed project on the non-Federal project sponsor's ability to raise or generate revenues;
  8. (h)The non-Federal project sponsor's financial history including their past performance on repaying loans and other debts; and
  9. (i)Any other financial means of the non-Federal project sponsor that is not captured in this subsection.