SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ballona Wetlands Restoration Act of 
1993''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds and declares the following:
            (1) Wetlands perform a number of valuable functions which 
        are important to the ecological and economic well-being of the 
        Nation, including--
                    (A) providing contributions to food and water 
                supplies, flood control, and wildlife resources;
                    (B) maintaining biological diversity; and
                    (C) providing natural habitats for many migratory 
                and resident fish and wildlife species, including 
                migratory birds, endangered species, and fish species 
                in commercial and recreational fisheries.
            (2) Over two-thirds of the wetlands that once existed in 
        the State of California have been severely degraded or no 
        longer exist.
            (3) Over nine-tenths of the wetlands that once existed in 
        the city of Los Angeles, California, have been severely 
        degraded or no longer exist.
            (4) The Ballona Wetlands constitute the last remaining 
        wetlands ecosystem of significant proportion located in the 
        city of Los Angeles.
            (5) The Ballona Wetlands, though significantly degraded, 
        support 185 species of birds along the Pacific Flyway.
            (6) The Ballona Wetlands are in imminent danger of an 
        ecosystem collapse.
            (7) If fully restored, the Ballona Wetlands could--
                    (A) provide a major fish nursery habitat for the 
                adjoining Santa Monica Bay;
                    (B) improve the water quality of Santa Monica Bay 
                by acting as a natural filtration system;
                    (C) provide increased habitat for endangered 
                species and migratory birds; and
                    (D) provide significant educational opportunities 
                regarding wetlands functions for persons in surrounding 
                urban areas.
            (8) It should be a high priority of the Federal Government 
        to encourage the full restoration of degraded wetlands.
    (b) Purpose.--The purpose of this Act is to establish a 
demonstration program to encourage the full tidal restoration of the 
Ballona Wetlands.

SEC. 3. DISCHARGE OF DREDGED OR FILL MATERIAL AT BALLONA WETLANDS.

    (a) Expedited Permitting.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of the Army shall issue 
regulations to provide for expedited consideration of permit 
applications submitted under section 404 of the Federal Water Pollution 
Control Act for the discharge of dredged or fill material into 
navigable waters at the Ballona Wetlands, Los Angeles, California.
    (b) Public Hearings.--Regulations issued under subsection (a) shall 
provide for notice and opportunity for public hearings in accordance 
with section 404(a) of the Federal Water Pollution Control Act.

SEC. 4. BALLONA WETLANDS DEMONSTRATION PROGRAM.

    (a) Establishment.--The Administrator of the Environmental 
Protection Agency, in consultation with the Secretary of the Army and 
the heads of other Federal departments and agencies, shall establish, 
in accordance with the requirements of this section, a demonstration 
program to encourage the full restoration of the Ballona Wetlands, Los 
Angeles, California.
    (b) Mitigation Credits.--
            (1) Award.--Under the demonstration program to be 
        established under subsection (a), the Administrator shall award 
        mitigation credits to persons who conduct activities for the 
        restoration of the Ballona Wetlands.
            (2) Use.--Mitigation credits awarded under the 
        demonstration program may be used in obtaining permits under 
        section 404 of the Federal Water Pollution Control Act for 
        activities to be conducted between Point Conception, 
        California, and the Mexican Border.
            (3) Banking.--The Administrator shall establish a 
        mitigation banking system in order to keep an accounting of 
        mitigation credits awarded under the demonstration program.
            (4) Sale.--Mitigation credits awarded under the 
        demonstration program may be sold to third parties with the 
        approval of the Administrator. The Administrator shall give 
        priority to third parties who are engaged in water dependent 
        development in San Pedro Bay and who are located in the county 
        of Los Angeles in approving the sale of mitigation credits 
        under this paragraph.
    (c) Regulations.--
            (1) Deadline.--Not later than 180 days after the date of 
        the enactment of this Act, the Administrator shall issue 
        regulations to carry out the demonstration program to be 
        established under subsection (a).
            (2) Contents.--Regulations to be issued under this 
        subsection shall contain the following:
                    (A) Scale for awarding of credits.--A scale for 
                awarding mitigation credits under the demonstration 
                program. Such scale shall take into account the degree 
                to which an activity will contribute to the full 
                restoration of the Ballona Wetlands and the 
                availability of other mitigation options.
                    (B) Guidelines for use of credits.--Guidelines for 
                determining how mitigation credits awarded under the 
                demonstration program may be used in obtaining permits 
                under section 404 of the Federal Water Pollution 
                Control Act. Such guidelines shall take into account 
                the relation between the ecological and economic 
                benefits of an activity for which mitigation credits 
                are to be awarded under the demonstration program and 
                the loss of habitat associated with the issuance of a 
                permit for an activity on the basis of such mitigation 
                credits.
    (d) Limitation.--The award of mitigation credits under the 
demonstration program to be established under subsection (a) shall not 
be construed to constitute prior approval by any Federal or State 
agency of any application for a permit for which such credits may 
ultimately be used.

SEC. 5. REPORT TO CONGRESS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, and annually thereafter for 5 years, the 
Administrator of the Environmental Protection Agency, in consultation 
with the Secretary of the Army and the Secretary of the Interior, shall 
transmit to Congress a report on the results of the demonstration 
program to be established under section 4.
    (b) Contents.--Each report to be transmitted to Congress under 
subsection (a) shall at a minimum contain the following:
            (1) An estimate of the total number of acres of wetlands 
        which have been restored under the demonstration program to be 
        established under section 4.
            (2) An assessment of the effectiveness of the demonstration 
        program in achieving the policy set forth in section 2(a)(7).
            (3) An assessment of the functions of the wetlands which 
        have been restored under the demonstration program.
            (4) An assessment of whether or not establishment of the 
        demonstration program has resulted in more timely completion of 
        mitigation activities under section 404 of the Federal Water 
        Pollution Control Act or in greater ease of administration of 
        permitting programs under such section.
            (5) A description of the costs associated with 
        administering the demonstration program.
Ballona Wetlands Restoration Act of 1993 - Directs the Secretary of the Army to issue regulations for the expedited consideration of permit applications submitted under the Federal Water Pollution Control Act for the discharge of dredged or fill material into navigable waters at the Ballona Wetlands in Los Angeles, California. 
Requires the Administrator of the Environmental Protection Agency to establish a demonstration program to encourage the full restoration of such wetlands.  Provides for mitigation credits to persons who conduct restoration activities.  Permits credits to be used for obtaining permits for the discharge of dredged or fill material between Point Conception, California, and the Mexican border. Requires the Administrator to establish a mitigation banking system and authorizes the sale of credits to third parties with the Administrator's approval.
Ballona Wetlands Restoration Act of 1993