33 U.S.C. § 1386 — Audits, reports, and fiscal controls; in-

Page 602 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 1384 amendment, text read as follows: ‘‘The amounts of funds available to each State water pollution control revolving fund shall be used only for providing finan- cial assistance (1) to any municipality, intermunicipal, interstate, or State agency for construction of publicly owned treatment works (as defined in section 1292 of this title), (2) for the implementation of a management program established under section 1329 of this title, and (3) for development and implementation of a conserva- tion and management plan under section 1330 of this title. The fund shall be established, maintained, and credited with repayments, and the fund balance shall be available in perpetuity for providing such financial assistance.’’ Subsec. (d)(1)(A). Pub. L. 113–121, § 5003(2)(A)(i), sub- stituted ‘‘the lesser of 30 years and the projected useful life (as determined by the State) of the project to be fi- nanced with the proceeds of the loan’’ for ‘‘20 years’’. Subsec. (d)(1)(B). Pub. L. 113–121, § 5003(2)(A)(ii), sub- stituted ‘‘upon the expiration of the term of the loan’’ for ‘‘not later than 20 years after project completion’’. Subsec. (d)(1)(E). Pub. L. 113–121, § 5003(2)(A)(iii)–(v), added subpar. (E). Subsec. (d)(7). Pub. L. 113–121, § 5003(2)(B), inserted ‘‘, $400,000 per year, or 1⁄5 percent per year of the cur- rent valuation of the fund, whichever amount is great- est, plus the amount of any fees collected by the State for such purpose regardless of the source’’ before period at end. Subsec. (i). Pub. L. 113–121, § 5003(3), added subsec. (i). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–121 effective Oct. 1, 2014, see section 5006 of Pub. L. 113–121, set out as a note under section 1381 of this title. § 1384. Allotment of funds (a) Formula Sums authorized to be appropriated to carry out this section for each of fiscal years 1989 and 1990 shall be allotted by the Administrator in accordance with section 1285(c) of this title. (b) Reservation of funds for planning Each State shall reserve each fiscal year 1 per- cent of the sums allotted to such State under this section for such fiscal year, or $100,000, whichever amount is greater, to carry out plan- ning under sections 1285(j) and 1313(e) of this title. (c) Allotment period (1) Period of availability for grant award Sums allotted to a State under this section for a fiscal year shall be available for obliga- tion by the State during the fiscal year for which sums are authorized and during the fol- lowing fiscal year. (2) Reallotment of unobligated funds The amount of any allotment not obligated by the State by the last day of the 2-year pe- riod of availability established by paragraph (1) shall be immediately reallotted by the Ad- ministrator on the basis of the same ratio as is applicable to sums allotted under sub- chapter II of this chapter for the second fiscal year of such 2-year period. None of the funds reallotted by the Administrator shall be real- lotted to any State which has not obligated all sums allotted to such State in the first fiscal year of such 2-year period. (June 30, 1948, ch. 758, title VI, § 604, as added Pub. L. 100–4, title II, § 212(a), Feb. 4, 1987, 101 Stat. 25.) Statutory Notes and Related Subsidiaries USE OF CAPITALIZATION GRANT FUNDS FOR CONSTRUCTION GRANTS Pub. L. 101–144, title III, Nov. 9, 1989, 103 Stat. 858, as amended by Pub. L. 101–302, title II, May 25, 1990, 104 Stat. 238, provided: ‘‘That, notwithstanding any other provision of law, sums heretofore, herein or hereafter appropriated under this heading [‘‘ENVIRONMENTAL PROTECTION AGENCY’’ and ‘‘CONSTRUCTION GRANTS’’] al- lotted for title VI [33 U.S.C. 1381 et seq.] capitalization grants to American Samoa, Commonwealth of the Northern Mariana Islands, Guam, the Republic of Palau (or its successor entity), Virgin Islands and the District of Columbia, may be used for title II [33 U.S.C. 1281 et seq.] construction grants at the request of the chief ex- ecutive of each of the above named entities, and sums appropriated in fiscal year 1989 shall remain available for obligation until September 30, 1992.’’ § 1385. Corrective action (a) Notification of noncompliance If the Administrator determines that a State has not complied with its agreement with the Administrator under section 1382 of this title or any other requirement of this subchapter, the Administrator shall notify the State of such noncompliance and the necessary corrective ac- tion. (b) Withholding of payments If a State does not take corrective action within 60 days after the date a State receives no- tification of such action under subsection (a), the Administrator shall withhold additional payments to the State until the Administrator is satisfied that the State has taken the nec- essary corrective action. (c) Reallotment of withheld payments If the Administrator is not satisfied that ade- quate corrective actions have been taken by the State within 12 months after the State is noti- fied of such actions under subsection (a), the payments withheld from the State by the Ad- ministrator under subsection (b) shall be made available for reallotment in accordance with the most recent formula for allotment of funds under this subchapter. (June 30, 1948, ch. 758, title VI, § 605, as added Pub. L. 100–4, title II, § 212(a), Feb. 4, 1987, 101 Stat. 25.) § 1386. Audits, reports, and fiscal controls; in- tended use plan (a) Fiscal control and auditing procedures Each State electing to establish a water pollu- tion control revolving fund under this sub- chapter shall establish fiscal controls and ac- counting procedures sufficient to assure proper accounting during appropriate accounting peri- ods for— (1) payments received by the fund; (2) disbursements made by the fund; and (3) fund balances at the beginning and end of the accounting period. (b) Annual Federal audits The Administrator shall, at least on an annual basis, conduct or require each State to have independently conducted reviews and audits as may be deemed necessary or appropriate by the Page 603 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 1388 Administrator to carry out the objectives of this section. Audits of the use of funds deposited in the water pollution revolving fund established by such State shall be conducted in accordance with the auditing procedures of the Government Accountability Office, including chapter 75 of title 31. (c) Intended use plan After providing for public comment and re- view, each State shall annually prepare a plan identifying the intended uses of the amounts available to its water pollution control revolv- ing fund. Such intended use plan shall include, but not be limited to— (1) a list of those projects for construction of publicly owned treatment works on the State’s priority list developed pursuant to sec- tion 1296 of this title and a list of activities el- igible for assistance under sections 1329 and 1330 of this title; (2) a description of the short- and long-term goals and objectives of its water pollution con- trol revolving fund; (3) information on the activities to be sup- ported, including a description of project cat- egories, discharge requirements under sub- chapters III and IV of this chapter, terms of fi- nancial assistance, and communities served; (4) assurances and specific proposals for meeting the requirements of paragraphs (3), (4), (5), and (6) of section 1382(b) of this title; and (5) the criteria and method established for the distribution of funds. (d) Annual report Beginning the first fiscal year after the re- ceipt of payments under this subchapter, the State shall provide an annual report to the Ad- ministrator describing how the State has met the goals and objectives for the previous fiscal year as identified in the plan prepared for the previous fiscal year pursuant to subsection (c), including identification of loan recipients, loan amounts, and loan terms and similar details on other forms of financial assistance provided from the water pollution control revolving fund. (e) Annual Federal oversight review The Administrator shall conduct an annual oversight review of each State plan prepared under subsection (c), each State report prepared under subsection (d), and other such materials as are considered necessary and appropriate in carrying out the purposes of this subchapter. After reasonable notice by the Administrator to the State or the recipient of a loan from a water pollution control revolving fund, the State or loan recipient shall make available to the Ad- ministrator such records as the Administrator reasonably requires to review and determine compliance with this subchapter. (f) Applicability of subchapter II provisions Except to the extent provided in this sub- chapter, the provisions of subchapter II shall not apply to grants under this subchapter. (June 30, 1948, ch. 758, title VI, § 606, as added Pub. L. 100–4, title II, § 212(a), Feb. 4, 1987, 101 Stat. 25; amended Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814.) Editorial Notes AMENDMENTS 2004—Subsec. (b). Pub. L. 108–271 substituted ‘‘Govern- ment Accountability Office’’ for ‘‘General Accounting Office’’. § 1387. Authorization of appropriations There are authorized to be appropriated to carry out the purposes of this subchapter— (1) $2,400,000,000 for fiscal year 2022; (2) $2,750,000,000 for fiscal year 2023; (3) $3,000,000,000 for fiscal year 2024; and (4) $3,250,000,000 for each of fiscal years 2025 and 2026. (June 30, 1948, ch. 758, title VI, § 607, as added Pub. L. 100–4, title II, § 212(a), Feb. 4, 1987, 101 Stat. 26; amended Pub. L. 117–58, div. E, title II, § 50210(b), Nov. 15, 2021, 135 Stat. 1169.) Editorial Notes AMENDMENTS 2021—Pub. L. 117–58 amended section generally. Prior to amendment, section related to appropriations for fiscal years 1989 to 1994. § 1388. Requirements (a) In general Funds made available from a State water pol- lution control revolving fund established under this subchapter may not be used for a project for the construction, alteration, maintenance, or repair of treatment works unless all of the iron and steel products used in the project are pro- duced in the United States. (b) Definition of iron and steel products In this section, the term ‘‘iron and steel prod- ucts’’ means the following products made pri- marily of iron or steel: lined or unlined pipes and fittings, manhole covers and other munic- ipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, construction mate- rials. (c) Application Subsection (a) shall not apply in any case or category of cases in which the Administrator finds that— (1) applying subsection (a) would be incon- sistent with the public interest; (2) iron and steel products are not produced in the United States in sufficient and reason- ably available quantities and of a satisfactory quality; or (3) inclusion of iron and steel products pro- duced in the United States will increase the cost of the overall project by more than 25 per- cent. (d) Waiver If the Administrator receives a request for a waiver under this section, the Administrator shall make available to the public, on an infor- mal basis, a copy of the request and information available to the Administrator concerning the request, and shall allow for informal public input on the request for at least 15 days prior to making a finding based on the request. The Ad-