The Secretary is authorized to participate with appropriate Federal, State, regional, and local authorities in studies to determine the feasibility of water reclamation and reuse projects recommended for such study pursuant to section 390h–1 of this title. The Federal share of the costs of such feasibility studies shall not exceed 50 per centum of the total, except that the Secretary may increase the Federal share of the costs of such feasibility study if the Secretary determines, based upon a demonstration of financial hardship on the part of the non-Federal participant, that the non-Federal participant is unable to contribute at least 50 per centum of the costs of such study. The Secretary may accept as part of the non-Federal cost share the contribution of such in-kind services by the non-Federal participant that the Secretary determines will contribute substantially toward the conduct and completion of the study.

The Federal share of feasibility studies, including those described in sections 390h–4 and 390h–6 through 390h–8 of this title, shall be considered as project costs and shall be reimbursed in accordance with the Federal reclamation laws, if the project studied is implemented.

In addition to the requirements of other Federal laws, feasibility studies conducted by the Secretary or the non-Federal project sponsor under sections 390h to 390h–39 of this title shall consider, among other things—

(1) near- and long-term water demand and supplies in the study area;

(2) all potential uses for reclaimed water;

(3) at least two alternative measures or technologies available for water reclamation, distribution, and reuse for the project under consideration;

(4) public health and environmental quality issues associated with use of reclaimed water;

whether development of the water reclamation and reuse measures under study would—

(A) reduce, postpone, or eliminate development of new or expanded water supplies,

(B) reduce or eliminate the use of existing diversions from natural watercourses or withdrawals from aquifers, or

(C) reduce the demand on existing Federal water supply facilities;

(6) the market or dedicated use for reclaimed water in the project’s service area; and

(7) the financial capability of the non-Federal project sponsor to fund its proportionate share of the project’s construction costs on an annual basis.

(Pub. L. 102–575, title XVI, § 1604, Oct. 30, 1992, 106 Stat. 4665; Pub. L. 104–266, § 4, Oct. 9, 1996, 110 Stat. 3295.)