Purpose: This regulation gives general instructions on use of Section 204(e), Reimbursement, of the Water Resources Development Act of 1986, Public Law 99-662 (Appendix A) to reimburse a non-Federal interest for construction of an authorized Federal harbor or inland harbor improvement, or a separable element thereof. It establishes general policies, outlines procedures to be followed in reaching an agreement with an eligible non-Federal interest, and provides guidance on the provisions of such an agreement (a model agreement is included as Appendix B). All authorized harbor and inland harbor projects are subject to this Act and Regulation.