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•HR 2419 EH1S 
(vii) Require that a State, Indian 
tribe, local government, watershed group, 
or critical service provider that receives 
Federal funds under paragraph (2) or (3) 
of subsection (b) cover not less than 25 
percent of the overall cost incurred in car-
rying out the project for which the Federal 
funds are provided. This cost sharing re-
quirement may be satisfied using non-Fed-
eral grants or cash donations made by 
non-Federal third parties. 
(4) SPECIAL REQUIREMENT FOR INTERSTATE 
WATERSHEDS.— 
(A) DEVELOPMENT
OF
DROUGHT
PRE-
PAREDNESS PLANS.—In order to receive funds 
under this subsection to develop drought pre-
paredness plans for interstate watersheds, the 
guidelines shall also require the relevant States, 
Indian tribes, or both, in which the watershed 
is located, to coordinate in the development of 
the drought preparedness plan. The develop-
ment of such plans shall— 
(i) be consistent with the relevant 
States’ and Tribal water laws, policies, and 
agreements;
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•HR 2419 EH1S 
(ii) be consistent and coordinated with 
any existing interstate stream compacts; 
(iii) include the participation of any 
relevant watershed groups located in the 
relevant States, Indian tribes, or both; and 
(iv) recognize that implementation of 
the interstate drought preparedness plan 
will involve further coordination among the 
relevant States, Indian tribes, or both, ex-
cept that each State and Indian tribe has 
sole jurisdiction over implementation of 
that portion of the watershed that exists 
within their boundaries. 
(B) IMPLEMENTATION OF DROUGHT PRE-
PAREDNESS PLANS.—In order to receive funds 
under this subsection to implement drought 
preparedness plans for interstate watersheds, 
the guidelines shall also require, to the extent 
practicable, the relevant States, Indian tribes, 
or both, in which the watershed is located, to 
coordinate in the implementation of the drought 
preparedness plan, recognizing the sovereignty 
of the States and Indian tribes. Implementation 
of 
interstate 
drought 
preparedness 
plans 
shall—
767 
•HR 2419 EH1S 
(i) be contingent upon the existence of 
a drought preparedness plan, but not re-
quire the distribution of funds to all States 
and Indian tribes in which the watershed is 
located; 
(ii) consider the level of impact within 
the watershed on each of the relevant 
States, Indian tribes, or both; and 
(iii) not impede on State water rights 
established as of the date of enactment of 
this Act. 
(j) DROUGHT PREPAREDNESS PLANS.— 
(1) IN GENERAL.—The Secretary shall— 
(A) with the concurrence of the Council, 
jointly develop guidelines for administering a 
national program to provide technical and fi-
nancial assistance to States, Indian tribes, local 
governments, watershed groups, and critical 
service providers for the development, mainte-
nance, and implementation of drought pre-
paredness plans; and 
(B) promulgate the guidelines developed 
under subparagraph (A). 
(2) REQUIREMENTS.—To build on the experi-
ence and avoid duplication of efforts of Federal,
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•HR 2419 EH1S 
State, local, tribal, and regional drought plans in ex-
istence on the date of enactment of this Act, the 
guidelines may recognize and incorporate those 
plans. 
(3) FEDERAL PLANS.— 
(A) IN
GENERAL.—The Secretary and 
other appropriate Federal agency heads shall 
develop and implement Federal drought pre-
paredness plans for agencies under the jurisdic-
tion of the appropriate Federal agency head. 
(B) 
REQUIREMENTS.—The 
Federal 
plans— 
(i) shall be integrated with each other; 
(ii) may be included as components of 
other Federal planning requirements; 
(iii) shall be integrated with drought 
preparedness plans of State, tribal, and 
local governments that are affected by 
Federal projects and programs; and 
(iv) shall be completed not later than 
two years after the date of the enactment 
of this Act. 
(4) STATE AND TRIBAL PLANS.—States and In-
dian tribes may develop and implement State and 
tribal drought preparedness plans that—
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•HR 2419 EH1S 
(A) address monitoring of resource condi-
tions that are related to drought; 
(B) identify areas that are at a high risk 
for drought; 
(C) describes mitigation strategies to ad-
dress and reduce the vulnerability of an area to 
drought; and 
(D) are integrated with State, tribal, and 
local water plans in existence on the date of en-
actment of this Act. 
(5) REGIONAL AND LOCAL PLANS.—Local gov-
ernments, watershed groups, and regional water pro-
viders may develop and implement drought pre-
paredness plans that— 
(A) address monitoring of resource condi-
tions that are related to drought; 
(B) identify areas that are at a high risk 
for drought; 
(C) describe mitigation strategies to ad-
dress and reduce the vulnerability of an area to 
drought; and 
(D) are integrated with corresponding 
State plans. 
(6) PLAN ELEMENTS.—A drought preparedness 
plan—
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•HR 2419 EH1S 
(A) shall be consistent with Federal and 
State laws, contracts, and policies; 
(B) shall allow each State to continue to 
manage water and wildlife in the State; 
(C) shall address the health, safety, and 
economic interests of those persons directly af-
fected by drought; 
(D) shall address the economic impact on 
resource-dependent businesses and industries, 
including regional tourism; 
(E) may include— 
(i) provisions for water management 
strategies to be used during various 
drought or water shortage thresholds, con-
sistent with State water law; 
(ii) provisions to address key issues 
relating 
to 
drought 
(including 
public 
health, safety, economic factors, and envi-
ronmental issues such as water quality, 
water quantity, protection of threatened 
and endangered species, and fire manage-
ment); 
(iii) provisions that allow for public 
participation in the development, adoption, 
and implementation of drought plans;
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•HR 2419 EH1S 
(iv) provisions for periodic drought ex-
ercises, revisions, and updates; 
(v) a hydrologic characterization study 
to determine how water is being used dur-
ing times of normal water supply avail-
ability to anticipate the types of drought 
mitigation actions that would most effec-
tively improve water management during a 
drought; 
(vi) drought triggers; 
(vii) specific implementation actions 
for droughts; 
(viii) a water shortage allocation plan, 
consistent with State water law; and 
(ix) comprehensive insurance and fi-
nancial strategies to manage the risks and 
financial impacts of droughts; and 
(F) shall take into consideration— 
(i) the financial impact of the plan on 
the ability of the utilities to ensure rate 
stability and revenue stream; and 
(ii) economic impacts from water 
shortages. 
(k) AUTHORIZATION OF APPROPRIATIONS.—
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•HR 2419 EH1S 
(1) COUNCIL.—There is authorized to be appro-
priated to carry out the activities of the Council 
$2,000,000 for fiscal year 2008 and for each of the 
subsequent seven fiscal years. 
(2) FUND.—There are authorized to be appro-
priated to the Fund such sums as are necessary to 
carry out subsection (i). 
SEC. 11013. PAYMENT OF PORTION OF PREMIUM FOR AREA 
REVENUE PLANS. 
Section 508(e) of the Federal Crop Insurance Act (7 
U.S.C. 1508(e)) is amended— 
(1) in paragraph (2), in the matter preceding 
subparagraph (A), by striking ‘‘paragraph (4)’’ and 
inserting ‘‘paragraphs (4), (6), and (7)’’; and 
(2) by adding at the end the following: 
‘‘(6) PREMIUM SUBSIDY FOR AREA REVENUE 
PLANS.—Subject to paragraph (4), in the case of a 
policy or plan of insurance that covers losses due to 
a reduction in revenue in an area, the amount of the 
premium paid by the Corporation shall be as follows: 
‘‘(A) In the case of additional area cov-
erage equal to or greater than 70 percent, but 
less than 75 percent, of the recorded county 
yield indemnified at not greater than 100 per-
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•HR 2419 EH1S 
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 59 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses. 
‘‘(B) In the case of additional area cov-
erage equal to or greater than 75 percent, but 
less than 85 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 55 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses.
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•HR 2419 EH1S 
‘‘(C) In the case of additional area cov-
erage equal to or greater than 85 percent, but 
less than 90 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 49 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses. 
‘‘(D) In the case of additional area cov-
erage equal to or greater than 90 percent of the 
recorded county yield indemnified at not greater 
than 100 percent of the expected market price, 
the amount shall be equal to the sum of— 
‘‘(i) 44 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage