SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Environmental Dredge Disposal Act of 
1996''.

SEC. 2. DREDGED MATERIAL DISPOSAL FACILITIES.

    Section 101 of the Water Resources Development Act of 1986 (33 
U.S.C. 2211) is amended by adding at the end the following:
    ``(f) Dredged Material Disposal Facilities.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, after the date of enactment of this subsection, the 
        provision of upland, aquatic, and confined aquatic dredged 
        material disposal facilities associated with the construction, 
        operation, and maintenance of all Federal navigation projects 
        for harbors and inland harbors (including diking and applying 
        dredged material to beneficial use and other improvements 
        necessary for the proper disposal of dredged material) shall be 
        considered to be a general navigation feature of a project for 
        the purpose of cost sharing under this section.
            ``(2) Limitations on federal share of project costs.--
                    ``(A) Funds not required for operation and 
                maintenance.--No funds comprising the Federal share of 
                the costs associated with the construction of a dredged 
                material disposal facility for the operation and 
                maintenance of a Federal navigation project for a 
                harbor or inland harbor in accordance with paragraph 
                (1) that are eligible to be paid with sums appropriated 
                out of the Harbor Maintenance Trust Fund under 
                paragraph (3) shall be expended for construction until 
                the Secretary, in the Secretary's discretion, 
                determines that the funds are not required to cover 
                eligible operation and maintenance costs assigned to 
                commercial navigation.
                    ``(B) Maximum federal share for operation and 
                maintenance.--The Federal share of the costs of 
                activities described in paragraph (3) for a project 
                shall not exceed $25,000,000 for any fiscal year.
            ``(3) Operation and maintenance costs.--For the purposes of 
        section 210, eligible operation and maintenance costs shall 
        include (in addition to eligible operation and maintenance 
        costs assigned to commercial navigation)--
                    ``(A) the Federal share of the costs of 
                constructing dredged material disposal facilities 
                associated with the operation and maintenance of all 
                Federal navigation projects for harbors and inland 
                harbors;
                    ``(B) the costs of operating and maintaining 
                dredged material disposal facilities associated with 
                the construction, operation, and maintenance of all 
                Federal navigation projects for harbors and inland 
                harbors;
                    ``(C) the Federal share of the costs of 
                environmental dredging and disposal facilities for 
                contaminated sediments that are in, or that affect the 
                maintenance of, Federal navigation channels and the 
                mitigation of environmental impacts resulting from 
                Federal dredging activities; and
                    ``(D) the Federal share of the costs of dredging, 
                management, and disposal of in-place contaminated 
                sediments and other environmental remediation in 
                critical port and harbor areas to facilitate maritime 
                commerce and navigation.
            ``(4) Preference.--In undertaking activities described in 
        paragraph (3)(D), the Secretary shall give preference to port 
        areas with respect to which, and in accordance with the extent 
        that, annual payments of harbor maintenance fees exceed Federal 
        expenditures for projects in the port area that are eligible 
        for reimbursement out of the Harbor Maintenance Trust Fund.
            ``(5) Applicability.--This subsection applies to the 
        provision of a dredged material disposal facility with respect 
        to which, and to the extent that--
                    ``(A) a contract for construction (or for 
                construction of a usable portion of such a facility); 
                or
                    ``(B) a contract for construction of an associated 
                navigation project (or usable portion of such a 
                project);
        has not been awarded on or before the date of enactment of this 
        subsection.
            ``(6) Amendment of existing agreements.--
                    ``(A) In general.--Unless otherwise requested by 
                the non-Federal interest within 30 days after the date 
                of enactment of this subsection, each cooperative 
                agreement entered into between the Secretary and a non-
                Federal interest under this section shall be amended, 
                effective as of the date of enactment of this 
                subsection, to conform to this subsection, including 
                provisions relating to the Federal share of project 
                costs for dredged material disposal facilities.
                    ``(B) Application of amendment.--An amendment to a 
                cooperative agreement required by subparagraph (A) 
                shall be applied prospectively.
            ``(7) Effect on non-federal costs of other dredged material 
        disposal facilities.--Nothing in this subsection shall 
        increase, or result in the increase of, the non-Federal share 
        of the costs of any dredged material disposal facility required 
        by the authorization for a project.''.
Environmental Dredge Disposal Act of 1996 - Amends the Water Resources Development Act of 1986 to consider the provision of dredged material disposal facilities associated with Federal navigation projects for harbors as a general navigation feature of a project for purposes of Federal cost sharing.  Prohibits the expenditure of Federal funds for costs associated with such a facility unless the Secretary of the Army determines that the funds are not required to cover eligible operation and maintenance (O&M) costs assigned to commercial navigation.  Limits to $25 million the Federal share of such O&M costs for a fiscal year.  Defines eligible O&M costs associated with such a project. 
Requires the amendment of existing agreements to conform with changes made under this Act.
Environmental Dredge Disposal Act of 1996