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[Senate Report 106-408]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 798
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-408

======================================================================

 
               SMALL WATERSHED REHABILITATION ACT OF 1999

                                _______
                                

               September 12, 2000.--Ordered to be printed

                                _______
                                

Mr. Lugar, from the Committee on Agriculture, Nutrition, and Forestry, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1762]

    The Committee on Agriculture, Nutrition, and Forestry, to 
which was referred the bill (S. 1762), to amend the Watershed 
Protection and Flood Prevention Act to authorize the Secretary 
of Agriculture to provide cost share assistance for the 
rehabilitation of structural measures constructed as part of 
water resource projects previously funded by the Secretary 
under such Act or related laws, having considered the same, 
reports favorably thereon and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
 I. Purpose, need and background......................................1
II. Section-by-section analysis.......................................3
III.Legislative history and votes in committee........................6

IV. Regulatory impact statement.......................................6
 V. Budgetary impact of the bill......................................6
VI. Changes in existing law...........................................8

                    I. Purpose, Need and Background

    Under current law, the Secretary of Agriculture, acting 
through the Natural Resources Conservation Service (NRCS), is 
authorized to provide technical and financial assistance to 
local organizations in planning and carrying out small 
watershed projects for flood protection, agricultural water 
management, recreation, municipal and industrial water supply, 
and wildlife enhancement. This authorization comes from the 
Watershed Protection and Flood Prevention Act of 1954 (PL-566), 
the small watershed program.
    Beginning in 1948, the U.S. Department of Agriculture began 
the construction of floodwater retention dams in upland areas 
of small watersheds throughout the country. Eleven pilot 
projects were built in as many states under authority of the 
Flood Control Act of 1944. PL-566 small watershed projects now 
account for a majority of the approximately 10,500 dams that 
were constructed since 1948.
    Generally, these structures, most earthen dams, were 
engineered for a useful lifespan of 50 years. Some dams have 
already exceeded that lifespan. Several hundred of these dams 
have been in place for more than 45 years and thousands are 
older than 30 years. Thus, spillway, slide gates and stems have 
deteriorated. Although properly designed and maintained, 
sediment basins in many of the impoundments have filled in 
providing less water storage, especially during storm events.
    Local sponsors are critical to the successful operation of 
the small watershed program. They secure land rights and 
easements for the projects. NRCS provides the technical and 
financial assistance for the actual construction. Once 
completed, the local sponsors assume full responsibility for 
maintenance and operation of the structures.
    Some dams do not meet current state dam safety regulations, 
as these regulations have changed over the years. USDA does not 
have the authority to rehabilitate these structures, and 
sponsoring organizations do not have the funds for the 
necessary renovation work.
    The Small Watershed Rehabilitation Act of 1999 authorizes a 
new 10-year program to rehabilitate aging floodwater retention 
projects. $60 million is authorized to be appropriated in each 
of the fiscal years 2000 through 2009. In addition, the 
Secretary of Agriculture, in cooperation with appropriate state 
agencies, is required to use $5 million of the total 
appropriation during fiscal years 2000 and 2001 to assess the 
rehabilitation needs in states where these dams and small 
watershed projects are located. The Secretary may provide 65 
percent of the total rehabilitation costs, but may not provide 
more than 100 percent of actual construction cost.
    The Secretary may require that zoning or development 
regulations are in place prior to entering into an agreement 
with a local organization so that the rehabilitation work will 
not become obsolete by subsequent development in the project 
area. The Committee expects that the Secretary will not enter 
such agreements if any zoning or development regulatory matters 
might jeopardize the effectiveness and full societal benefits 
of the investment.
    The Secretary, acting through NRCS, may provide required 
technical assistance for planning, designing and implementing 
the rehabilitation project, but financial assistance may not be 
used for operation and maintenance activities. The Committee 
intends that the cost of technical assistance provided by NRCS 
for planning, designing, and implementing the rehabilitation 
project will not be included as a part of the total 
rehabilitation cost of the project forpurposes of calculating 
the amount of federal funds that may be made available to the eligible 
local organization, under the cost share formula. Funding for NRCS 
technical assistance is to come from funds appropriated under this Act.
    The local organization may apply for this assistance if an 
application has also been made to the state agency having 
jurisdiction over the project of the Governor of the State. The 
Secretary shall request that the state dam safety officer or 
equivalent state official be involved in the application 
process if state permits or other approval is required.
    The Secretary shall establish an approval process that 
provides for a proper administration of funds, recognizing that 
applications will be made throughout a fiscal year and 
approvals may be limited by fund availability. This process 
will be in writing and made known to local organizations and 
states.
    To ensure the wise use of funds, the Committee intends that 
rehabilitation projects are conducted in the most cost-
effective means possible considering economic, social, and 
environmental aspects of the project. A formal benefit-cost 
analysis is not required. However, all benefits and costs (both 
numeric and descriptive) should be included in project 
documentation and be available for adequate public review prior 
to final approval. The Secretary shall maintain a database to 
track the benefits of the rehabilitation projects. The database 
would serve as a guide for future approval of projects, 
including evaluation of the costs and environmental and 
conservation benefits. Local organizations must provide to the 
Secretary, within 90 days after the project completion, a 
status report of the rehabilitation effort.

                    II. Section-by-Section Analysis

Section 1. Short title

    This section provides the legislation may be cited as ``The 
Small Watershed Rehabilitation Act of 1999''.

Section 2. Rehabilitation of water resources structures measures 
        constructed under certain Department of Agriculture Programs

    This section amends the Watershed Protection and Flood 
Prevention Act (16 U.S.C. 1001 et seq.) by adding a new 
section:

Section 14. Rehabilitation of structural measures near, at, or past 
        their evaluated life expectancy

            Subsection (a) Definitions
    This subsection defines terms used in the bill.
    Paragraph (a)(1). This paragraph defines ``rehabilitation'' 
to mean all work necessary to extend the service life of the 
structural measure, where applicable, and meet applicable 
safety and performance standards. This may include prolonging 
the useful life of the structure beyond its original life 
expectancy, correcting damage or deterioration of the 
structure, upgrading the structural measure to meet changed 
land use conditions or safety needs within the watershed, or 
decommissioning the structure including removal or breaching. 
Completion of a project occurs once all structural measures for 
each individual dam, regardless of the number of dams covered 
by a project, are finished and the project is sufficient to 
permit renegotiation of any agreement entered into between the 
Secretary and the local organization. The Committee envisions 
the project deemed complete when the appropriate safety agency 
has given final written approval.
    Paragraph (a)(2). This paragraph defines ``covered water 
resource project'' to mean works of improvement under PL-566, 
PL 78-534, the pilot watershed program authorized in the 
Department of Agriculture Appropriation Act of 1954; and the 
resource conservation and development program.
    Paragraph (a)(3). This paragraph defines ``eligible local 
organization'' to mean the local organization or appropriate 
state agency responsible for the operation and maintenance of 
the structural measures.
    Paragraph (a)(4). This paragraph defines ``structural 
measure'' as a dam that was constructed as part of a covered 
water resource project.
    Subsection (b) Cost Share Assistance for Rehabilitation.
    Paragraph (b)(1). This paragraph authorizes the Secretary 
of Agriculture to provide assistance to cover part of the total 
costs of rehabilitating structural measures. These costs may 
include land acquisition, easements, and rights-of-way, 
rehabilitation project administration, technical assistance, 
and contracting and construction costs. The local organization 
is responsible for securing all land rights necessary for the 
project.
    Paragraph (b)(2). This paragraph specifies federal funding 
equal to 65 percent of the total rehabilitation costs but not 
to exceed 100 percent of the actual construction costs. The 
local organization is responsible for the costs of water, 
mineral and other resource rights and all required permits. The 
Committee recognizes that in addition to the cost outlay for 
actual construction operations, other costs will be incurred, 
and that the total cost of a rehabilitation project will be 
greater than the cost of construction alone. These additional 
costs may include, but are not limited to, cost of surveys, 
project design, permit acquisition, easements, and 
environmental assessments, which may be contributed in kind by 
the local authority. The Committee intends that the Federal 
contribution is to be 65 percent of the total costs of a 
project. However, the Federal funds allocated to a 
rehabilitation project shall not be greater than the outlay for 
actual construction operations alone.
    Paragraph (b)(3). This paragraph authorizes the Secretary, 
working with the localorganization, to ensure that the local 
organization acquires proper zoning and other development regulations 
are secured before entering into a rehabilitation agreement with the 
sponsoring organization.
    The Committee recognizes that decommissioning and dam 
removal may be highly beneficial and cost effective options. 
The Committee intends that rehabilitation plans and their 
implementation be such that they provide for the attainment of 
the full range of societal benefits, including the protection 
of environmental resources and conservation.
    Subsection (c). This subsection authorizes the Natural 
Resources Conservation Service to provide technical assistance 
in all phases of the rehabilitation project if the assistance 
is requested by the local organization.
    Subsection (d). Prohibited Use.
    Paragraph (d)(1). This paragraph prohibits assistance from 
being used for operation or maintenance activities. These 
operating and maintenance activities will remain the 
responsibility of the local organization.
    Paragraph (d)(2). This paragraph authorizes the Secretary 
to renegotiate the original agreement for the project regarding 
responsibility for operation and maintenance when the 
rehabilitation is completed.
    Subsection (e). This subsection requires an appropriate 
state agency or the Governor of the state to approve the local 
organization's application for assistance for technical and 
financial assistance. The Secretary also is required to involve 
the state dam safety officer or equivalent state official in 
the application process if state permits are required for the 
rehabilitation project. The rehabilitation project must meet 
standards established by the Secretary, and the NRCS may assist 
in preparing applications if the local organization requests.
    Subsection (f). This subsection requires the Secretary to 
ensure the rehabilitation project is performed in the most 
cost-effective manner that accomplishes the objective. Since 
the projects are generally required for public health or safety 
concerns, no benefit-cost analysis will be conducted and no 
benefit-cost analysis greater than one will be required. 
Appropriate documentation is required to ensure the wise use of 
funds.
    The Committee recognizes while a strict cost-benefit 
analysis is not required, the objectives of each rehabilitation 
project must be accomplished in the most cost-effective manner 
and that expects full consideration shall be given by the 
Secretary, working through the Natural Resources Conservation 
Service, to a full range of options that may be equally or more 
cost-effective with fewer environmental costs than the 
rehabilitation of existing structures. These options include, 
but are not limited to, dam decommissioning, dam removal, 
wetland restoration, voluntary buy-outs of at-risk structures, 
and coordinated watershed planning and management processes. 
Further, the Committee expects that the planning and 
implementation of each rehabilitation project be conducted with 
the full consultation of the local authorities and other 
interested parties taking into account local conditions and 
concerns. The Committee recognizes the demonstrated utility of 
wetland restoration in achieving flood control and 
environmental resources and conservation objectives.
    Subsection (g). This subsection requires the Secretary to 
establish a system for approving rehabilitation requests that 
is equitable to all local organizations, recognizing that 
requests will be received throughout a fiscal year and will be 
approved subject to the availability of funds. The approval 
process must be in writing and made known to all eligible 
applicants.
    Subsection (h). This subsection authorizes appropriations 
of $60 million in each of the fiscal years 2000 through 2009 
for technical and financial assistance.
    Subsection (i). This subsection requires the use of $5 
million in fiscal years 2000 and 2001 of any funds appropriated 
for the Secretary to assess the rehabilitation needs in all 
states where such small watershed projects are located.
    Subsection (j). This subsection requires the Secretary to 
track the benefits of the rehabilitation projects and to report 
annually to Congress. Local organizations are required to 
report to the Secretary on the status of the rehabilitation 
project within 90 days after completion of the project.

                          III. Committee Vote

                             COMMITTEE VOTE

    In compliance with paragraph 7 of rule XXVI of the Standing 
Rules of the Senate, the following statement is made concerning 
the votes of the Committee in its consideration of the bill:
    The Committee met in open session on Tuesday, June 20, 2000 
and, in the presence of a quorum, ordered that the bill be 
favorably reported by a voice vote.

                    IV. Regulatory Impact Statement

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the following evaluation is made 
concerning the regulatory impact of enacting this legislation:
    There are over 10,000 watershed projects in the small 
watershed program. This legislation allows sponsors of these 
projects to seek financial and technical assistance to 
rehabilitate these projects. While local sponsors would have to 
contribute 35 percent of the cost of the project, these costs 
would be voluntary and rehabilitation should have a positive 
economic benefit for individuals, consumers and businesses in 
the watershed and surrounding area. There is a possible adverse 
impact on the personal privacy of individuals affected by this 
legislation where easements and right-of ways may need to be 
secured or modified. However, most previous easements for 
existing projects have been donated. The Committee does not 
anticipate a significant increase in paperwork or reporting 
requirements due to this bill.

                    V. Budgetary Impact of the Bill

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate, the following letter has been 
received from the Congressional Budget Office regarding the 
budgetary impact of the bill:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 27, 2000.
Hon. Richard G. Lugar,
Chairman, Committee on Agriculture, Nutrition, and Forestry,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1762, the Small 
Watershed Rehabilitation Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Applebaum.
            Sincerely,
                                        Steven M. Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 1762--Small Watershed Rehabilitation Act of 1999

    Summary: Local watershed project sponsors, assisted by the 
Natural Resources Conservation Service (NRCS), have constructed 
over 10,000 watershed projects under the Small Watershed 
Program. S. 1762 would authorize the Secretary of Agriculture, 
acting through the NRCS, to assist local project sponsors in 
rehabilitating those projects. The bill would authorize the 
appropriation of $60 million a year over the 2000-2009 period 
for financial and technical assistance to eligible local 
organizations for planning, designing, and implementing 
watershed rehabilitation projects. S. 1762 would require the 
Secretary to assess the need for watershed rehabilitation in 
all states in which eligible water projects exist, establish a 
process for approving requests for assistance, monitor the 
benefits of rehabilitation efforts, and submit an annual report 
to the Congress on the status of such efforts.
    Based on information from the NRCS, CBO estimates that 
implementing S. 1762 would cost $270 million over the 2000-2005 
period, assuming appropriation of the amounts specified in the 
bill. The bill would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply. S. 1762 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act (UMRA). State and 
local governments would probably incur some costs to match the 
grants authorized by this bill, but these costs would be 
voluntary.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 1762 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year, in millions of dollars
                                                           -----------------------------------------------------
                                                              2000     2001     2002     2003     2004     2005
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             SPENDING SUBJECT TO APPROPRIATION

Authorization level.......................................       60       60       60       60       60       60
Estimated outlays.........................................        0        2       69       72       67       60
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    Basis of Estimate: For this estimate, CBO assumes that S. 
1762 will be enacted during fiscal year 2000 and that funding 
will be provided as authorized by the bill. Estimates of 
outlays are based on historical spending patterns for similar 
programs. To date, no funds have been appropriated to NRCS for 
activities authorized under S. 1762.
    Pay-as-you-go Considerations: None.
    Intergovernmental and Private-Sector Impact: S. 1762 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. State and local governments would probably 
incur some costs to match the grants authorized by this bill, 
but these costs would be voluntary. The bill would require 
recipients to fund at least 35 percent of the total costs of 
assisted projects.
    Previous CBO Estimate: On November 3, 1999, CBO transmitted 
a cost estimate for H.R. 728, the Small Watershed 
Rehabilitation Amendments of 1999, as ordered reported by the 
House Committee on Agriculture on October 27, 1999. That 
legislation is nearly identical to S. 1762, and the cost 
estimates are the same.
    On April 17, 2000, CBO transmitted a cost estimate for H.R. 
728 as ordered reported by the House Committee on 
Transportation and Infrastructure on November 18, 1999. The 
version approved by the Transportation and Infrastructure 
Committee also would authorize $60 million a year for the NRCS, 
but in addition, it would authorize the appropriation of $30 
million in 2001 for federal assistance by the Army Corps of 
Engineers.
    Estimate Prepared by: Federal Costs: Rachel Applebaum; 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller; and Impact on the Private Sector: Sarah Sitarek.
    Estimate Approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      VI. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made in 
the bill, as reported are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

             WATERSHED PROTECTION AND FLOOD PREVENTION ACT

SEC. 13. DATA.

    The Secretary shall collect and maintain data on a national 
and State by State basis concerning--
          (1) expenditures for the individual flood control and 
        conservation measures for which assistance is provided 
        under this Act; and
          (2) the expected flood control or environmental 
        (including soil erosion) benefits that will result from 
        the implementation of such measures

           *       *       *       *       *       *       *

SEC. 14. REHABILITATION OF STRUCTURAL MEASURES NEAR, AT, OR PAST THEIR 
                    EVALUATED LIFE EXPECTANCY.

    (a) Definitions.--For purposes of this section:
          (1) Rehabilitation.--The term ``rehabilitation'', 
        with respect to a structural measure constructed as 
        part of a covered water resource project, means the 
        completion of all work necessary to extend the service 
        life of the structural measure and meet applicable 
        safety and performance standards. This may include (A) 
        protecting the integrity of the structural measure, or 
        prolonging the useful life of the structural measure, 
        beyond the original evaluated life expectancy, (B) 
        correcting damage to the structural measure from a 
        catastrophic event, (C) correcting the deterioration of 
        structural components that are deteriorating at an 
        abnormal rate, (D) upgrading the structural measure to 
        meet changed land use conditions in the watershed 
        served by the structural measure or changed safety 
        criteria applicable to the structural measure, or (E) 
        decommissioning the structural measure, including 
        removal or breaching.
          (2) Covered water resource project.--The term 
        ``covered water resource project'' means a work of 
        improvement carried out under any of the following:
                  (A) This Act.
                  (B) Section 13 of the Act of December 22, 
                1944 (Public Law 78-534; 58 Stat. 905).
                  (C) The pilot watershed program authorized 
                under the heading ``Flood Prevention'' of the 
                Department of Agriculture Appropriation Act, 
                1954 (Public Law 156; 67 Stat. 214).
                  (D) Subtitle H of title XV of the Agriculture 
                and Food Act of 1981 (16 U.S.C. 3451 et seq.; 
                commonly known as the Resource Conservation and 
                Development Program).
          (3) Eligible local organization.--The term ``eligible 
        local organization'' means a local organization or 
        appropriate State agency responsible for the operation 
        and maintenance of structural measures constructed as 
        part of a covered water resource project.
          (4) Structural measure.--The term ``structural 
        measure'' means a physical improvement that impounds 
        water, commonly known as a dam, which was constructed 
        as part of a covered water resource project.
    (b) Cost Share Assistance for Rehabilitation.--
          (1) Assistance authorized.--The Secretary may provide 
        financial assistance to an eligible local organization 
        to cover a portion of the total costs incurred for the 
        rehabilitation of structural measures originally 
        constructed as part of a covered water resource 
        project. The total costs of rehabilitation include the 
        costs associated with all components of the 
        rehabilitation project, including acquisition of land, 
        easements, and rights-of-ways, rehabilitation project 
        administration, the provision of technical assistance, 
        contracting, and construction costs, except that the 
        local organization shall be responsible for securing 
        all land, easements, or rights-of-ways necessary for 
        the project.
          (2) Amount of assistance; limitations.--The amount of 
        Federal funds that may be made available under this 
        subsection to an eligible local organization for 
        construction of a particular rehabilitation project 
        shall be equal to 65 percent of the total 
        rehabilitation costs, but not to exceed 100 percent of 
        actual construction costs incurred in the 
        rehabilitation. However, the local organization shall 
        be responsible for the costs of water, mineral, and 
        other resource rights and all Federal, State, and local 
        permits.
          (3) Relation to land use and development 
        regulations.--As a condition on entering into an 
        agreement to provide financial assistance under this 
        subsection, the Secretary, working in concert with the 
        eligible local organization, may require that proper 
        zoning or other developmental regulations are in place 
        in the watershed in which the structural measures to be 
        rehabilitated under the agreement are located so that--
                  (A) the completed rehabilitation project is 
                not quickly rendered inadequate by additional 
                development; and
                  (B) society can realize the full benefits of 
                the rehabilitation investment.
    (c) Technical Assistance for Watershed Project 
Rehabilitation.--The Secretary, acting through the Natural 
Resources Conservation Service, may provide technical 
assistance in planning, designing, and implementing 
rehabilitation projects should an eligible local organization 
request such assistance. Such assistance may consist of 
specialists in such fields as engineering, geology, soils, 
agronomy, biology, hydraulics,hydrology, economics, water 
quality, and contract administration.
    (d) Prohibited Use.--
          (1) Performance of operation and maintenance.--
        Rehabilitation assistance provided under this section 
        may not be used to perform operation and maintenance 
        activities specified in the agreement for the covered 
        water resource project entered into between the 
        Secretary and the eligible local organization 
        responsible for the works of improvement. Such 
        operation and maintenance activities shall remain the 
        responsibility of the local organization, as provided 
        in the project work plan.
          (2) Renegotiation.--Notwithstanding paragraph (1), as 
        part of the provision of financial assistance under 
        subsection (b), the Secretary may renegotiate the 
        original agreement for the covered water resource 
        project entered into between the Secretary and the 
        eligible local organization regarding responsibility 
        for the operation and maintenance of the project when 
        the rehabilitation is finished.
    (e) Application for Rehabilitation Assistance.--An eligible 
local organization may apply to the Secretary for technical and 
financial assistance under this section if the application has 
also been submitted to and approved by the State agency having 
supervisory responsibility over the covered water resource 
project at issue or, if there is no State agency having such 
responsibility, by the Governor of the State. The Secretary 
shall request the State dam safety officer (or equivalent State 
official) to be involved in the application process if State 
permits or approvals are required. The rehabilitation of 
structural measures shall meet standards established by the 
Secretary and address other dam safety issues. At the request 
of the eligible local organization, personnel of the Natural 
Resources Conservation Service of the Department of Agriculture 
may assist in preparing applications for assistance.
    (f) Justification for Rehabilitation Assistance.--In order 
to qualify for technical or financial assistance under this 
authority, the Secretary shall require the rehabilitation 
project to be performed in the most cost-effective manner that 
accomplishes the rehabilitation objective. Since the 
requirements for accomplishing the rehabilitation are generally 
for public health and safety reasons, in many instances being 
mandated by other State or Federal laws, no benefit-cost 
analysis will be conducted and no benefit-cost ratio greater 
than one will be required. The benefits of and the requirements 
for the rehabilitation project shall be documented to ensure 
the wise and responsible use of Federal funds.
    (g) Ranking of Requests for Rehabilitation Assistance.--The 
Secretary shall establish such system of approving 
rehabilitation requests, recognizing that such requests will be 
received throughout the fiscal year and subject to the 
availability of funds to carry out this section, as is 
necessary for proper administration by the Department of 
Agriculture and equitable for all eligible local organizations. 
The approval process shall be in writing, and made known to all 
eligible local organizations and appropriate State agencies.
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary $60,000,000 for each of the 
fiscal years 2000 through 2009 to provide financial and 
technical assistance under this section.
    (i) Assessment of Rehabilitation Needs.--Of the amount 
appropriated pursuant to subsection (h) for fiscal years 2000 
and 2001, $5,000,000 shall be used by the Secretary, in concert 
with the responsible State agencies, to conduct an assessment 
of the rehabilitation needs of covered water resource projects 
in all States in which such projects are located.
    (j) Recordkeeping and Reports.--
          (1) Secretary.--The Secretary shall maintain a data 
        base to track the benefits derived from rehabilitation 
        projects supported under this section and the 
        expenditures made under this section. On the basis of 
        such data and the reports submitted under paragraph 
        (2), the Secretary shall prepare and submit to Congress 
        an annual report providing the status of activities 
        conducted under this section.
          (2) Grant recipients.--Not later than 90 days after 
        the completion of a specific rehabilitation project for 
        which assistance is provided under this section, the 
        eligible local organization that received the 
        assistance shall make a report to the Secretary giving 
        the status of any rehabilitation effort undertaken 
        using financial assistance provided under this section.

                                  
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