43 C.F.R. § 404.17
How will Reclamation evaluate my statement of interest?
(a) Reclamation will apply the eligibility requirements in §§ 404.6 and 404.7 and the prioritization criteria in § 404.13, to determine whether the proposed rural water supply project is eligible for further consideration through a full proposal;
(b) If the proposed project is not eligible for further consideration, Reclamation will notify you in writing of that outcome; and,
(c) If the proposed project is eligible for further consideration, Reclamation will notify you in writing that you are eligible to develop a full proposal to conduct an appraisal investigation, as described in § 404.20.