(b) IN-KIND SERVICES; TREATMENT OF CERTAIN 
FUNDS.—Section 510(d)(2) of such Act (110 Stat. 3760) 
is amended by adding at the end the following: 
‘‘(C) IN-KIND SERVICES.—The non-Federal 
share of the project costs of a local cooperation 
agreement entered into under this section may 
include in-kind services. 
‘‘(D) TREATMENT OF CERTAIN FUNDS.— 
Funds provided by a Federal department or 
agency other than the Corps of Engineers for a 
project under this section shall be treated as 
non-Federal funds for purposes of cost sharing 
requirements under this subsection.’’. 
(c) PROJECTS.—Section 510(f) of such Act (110 
Stat. 3760) is amended to read as follows: 
‘‘(f) PROJECTS.—The Secretary may carry out 
projects under this section in the Chesapeake Bay water-
shed, with the goal of carrying out projects in— 
‘‘(1) the States of Delaware, New York, Mary-
land, Pennsylvania, Virginia, and West Virginia; and 
‘‘(2) the District of Columbia.’’. 
(d) SMALL WATERSHED GRANTS.—Section 510 of 
such Act (110 Stat. 3759) is amended— 
(1) by redesignating subsections (h) and (i) as 
subsections (i) and (j), respectively; and 
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(2) by inserting after subsection (g) the fol-
lowing: 
‘‘(h) SMALL WATERSHED GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a program, to be administered by the National 
Fish and Wildlife Foundation, to provide small wa-
tershed grants for technical and financial assistance 
to local governments and nonprofit organizations in 
the Chesapeake Bay region. 
‘‘(2) USE OF FUNDS.—A local government or 
nonprofit organization that receives a grant under 
paragraph (1) shall use funds from the grant only 
for implementation of cooperative tributary basin 
and other Chesapeake Bay-wide strategies that ad-
dress storm water management or the establishment, 
restoration, protection, or enhancement of natural 
habitat associated with the Chesapeake Bay eco-
system.’’. 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 
510(j) of such Act (as redesignated by subsection (d)(1) 
of this section) is amended by striking ‘‘$40,000,000’’ and 
inserting ‘‘$50,000,000’’. 
(f) RESTORATION
OF
CHESAPEAKE
BAY
ECO-
SYSTEM.— 
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(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretary of 
the Army shall develop at Federal expense and sub-
mit to Congress a comprehensive plan to prioritize 
projects within the Chesapeake Bay watershed, in-
cluding projects in the Anacostia, Elizabeth, James, 
Patapsco, Patuxent, Potomac, Rappahannock, Sus-
quehanna, and York River basins. 
(2) REQUIREMENTS.—The plan shall— 
(A) focus on integrating existing and po-
tential future work of the Corps of Engineers; 
(B) be developed in consultation with the 
Chesapeake Bay Program under section 117 of 
the Federal Water Pollution Control Act (33 
U.S.C. 1267); and 
(C) encompass all actions of the Corps of 
Engineers that are necessary to assist in the 
implementation of the goals of the Chesapeake 
Bay Agreement, an interstate agreement among 
the Administrator, the Chesapeake Bay Com-
mission, the District of Columbia, and the 
States of Maryland, Virginia, and Pennsylvania, 
as determined by the Secretary. 
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(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $1,000,000. 
Æ 
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