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SEC. 5124. UPPER SUSQUEHANNA RIVER BASIN, PENNSYL-
VANIA AND NEW YORK. 
(a) STUDY AND STRATEGY DEVELOPMENT.—Section 
567(a) of the Water Resources Development Act of 1996 
(110 Stat. 3787; 114 Stat. 2662) is amended— 
(1) in the matter preceding paragraph (1) by 
inserting ‘‘and carry out’’ after ‘‘develop’’; and 
(2) 
in 
paragraph 
(2) 
by 
striking 
‘‘$10,000,000.’’ and inserting ‘‘$20,000,000, of 
which the Secretary may utilize not more than 
$5,000,000 to design and construct feasible pilot 
projects during the development of the strategy to 
demonstrate alternative approaches for the strategy. 
The total cost for any single pilot project may not 
exceed $500,000. The Secretary shall evaluate the 
results of the pilot projects and consider the results 
in the development of the strategy.’’. 
(b) COOPERATIVE AGREEMENTS.—Section 567(c) of 
such Act (114 Stat. 2662) is amended— 
(1) in the subsection heading by striking ‘‘CO-
OPERATION’’ and inserting ‘‘COOPERATIVE’’; and 
(2) in the first sentence— 
(A) by inserting ‘‘and carrying out’’ after 
‘‘developing’’; and 
(B) by striking ‘‘cooperation’’ and insert-
ing ‘‘cost-sharing and cooperative’’.
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(c) 
IMPLEMENTATION
OF
STRATEGY.—Section 
567(d) of such Act (114 Stat. 2663) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’; 
(2) in the second sentence of paragraph (1) (as 
so designated)— 
(A) by striking ‘‘implement’’ and inserting 
‘‘carry out’’; and 
(B) by striking ‘‘implementing’’ and insert-
ing ‘‘carrying out’’; 
(3) by adding at the end the following: 
‘‘(2) PRIORITY
PROJECT.—In carrying out 
projects to implement the strategy, the Secretary 
shall give priority to the project for ecosystem res-
toration, Cooperstown, New York, described in the 
Upper 
Susquehanna 
River 
Basin—Cooperstown 
Area Ecosystem Restoration Feasibility Study, dated 
December 2004, prepared by the Corps of Engineers 
and the New York State Department of Environ-
mental Conservation.’’; and 
(4) by aligning the remainder of the text of 
paragraph (1) (as designated by paragraph (1) of 
this subsection) with paragraph (2) (as added by 
paragraph (3) of this subsection).
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(d) CREDIT.—Section 567 of such Act (110 Stat. 
3787; 114 Stat. 2662) is amended by adding at the end 
the following: 
‘‘(e) CREDIT.—The Secretary shall credit toward the 
non-Federal share of the cost of a project under this sec-
tion— 
‘‘(1) the cost of design and construction work 
carried out by the non-Federal interest before the 
date of the partnership agreement for the project if 
the Secretary determines that the work is integral to 
the project; and 
‘‘(2) the cost of in-kind services and materials 
provided for the project by the non-Federal inter-
est.’’. 
SEC. 5125. CANO MARTIN PENA, SAN JUAN, PUERTO RICO. 
The Secretary shall review a report prepared by the 
non-Federal interest concerning flood protection and envi-
ronmental restoration for Cano Martin Pena, San Juan, 
Puerto Rico, and, if the Secretary determines that the re-
port meets the evaluation and design standards of the 
Corps of Engineers and that the project is feasible, the 
Secretary may carry out the project at a total cost of 
$130,000,000, with an estimated Federal cost of 
$85,000,000 and an estimated non-Federal cost of 
$45,000,000.
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SEC. 5126. BEAUFORT AND JASPER COUNTIES, SOUTH 
CAROLINA. 
The Secretary may accept from the Department of 
the Navy, and may use, not to exceed $23,000,000 to as-
sist the Beaufort Jasper Water and Sewage Authority, 
South Carolina, with its plan to consolidate civilian and 
military wastewater treatment facilities. 
SEC. 5127. EAST TENNESSEE. 
(a) EAST TENNESSEE DEFINED.—In this section, 
the term ‘‘East Tennessee’’ means the counties of Blount, 
Knox, Loudon, McMinn, Monroe, and Sevier, Tennessee. 
(b) ESTABLISHMENT OF PROGRAM.—The Secretary 
may establish a program to provide environmental assist-
ance to non-Federal interests in East Tennessee. 
(c) FORM OF ASSISTANCE.—Assistance under this 
section may be in the form of design and construction as-
sistance for water-related environmental infrastructure 
and resource protection and development projects in East 
Tennessee, including projects for wastewater treatment 
and related facilities, water supply and related facilities, 
environmental restoration, and surface water resource pro-
tection and development. 
(d) OWNERSHIP REQUIREMENT.—The Secretary may 
provide assistance for a project under this section only if 
the project is publicly owned. 
(e) PARTNERSHIP AGREEMENTS.—
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(1) IN GENERAL.—Before providing assistance 
under this section, the Secretary shall enter into a 
partnership agreement with a non-Federal interest 
to provide for design and construction of the project 
to be carried out with the assistance. 
(2) REQUIREMENTS.—Each partnership agree-
ment entered into under this subsection shall provide 
for the following: 
(A) PLAN.—Development by the Secretary, 
in consultation with appropriate Federal and 
State officials, of a facilities or resource protec-
tion and development plan, including appro-
priate engineering plans and specifications. 
(B) LEGAL
AND
INSTITUTIONAL
STRUC-
TURES.—Establishment of such legal and insti-
tutional structures as are necessary to ensure 
the effective long-term operation of the project 
by the non-Federal interest. 
(3) COST SHARING.— 
(A) IN GENERAL.—The Federal share of 
the project cost under each partnership agree-
ment entered into under this subsection shall be 
75 percent. The Federal share may be in the 
form of grants or reimbursements of project 
costs.