194
(2) CONTRIBUTIONS.—The Secretary may use
the authority under section 214 of the Water Re-
sources Development Act of 2000 (33 U.S.C. 2201
note) for the project described in paragraph (1).
(3) PROTECTION
OF
IMPARTIAL
DECISION-
MAKING.—In carrying out this subsection, the Sec-
retary and the heads of Federal agencies receiving
funds under such section 214 for the project de-
scribed in paragraph (1) shall ensure that the use of
the funds accepted under such section for such
project will not impact impartial decisionmaking
with respect to the issuance of permits, either sub-
stantively or procedurally, or diminish, modify, or
otherwise affect the statutory or regulatory authori-
ties of such agencies.
SEC. 5035. SAN FRANCISCO, CALIFORNIA, WATERFRONT
AREA.
(a) AREA TO BE DECLARED NONNAVIGABLE; PUB-
LIC INTEREST.—Unless the Secretary finds, after con-
sultation with local and regional public officials (including
local and regional public planning organizations), that the
proposed projects to be undertaken within the boundaries
of the portion of the San Francisco, California, waterfront
area described in subsection (b) are not in the public inter-
195
est, such portion is declared to be nonnavigable waters of
the United States.
(b) NORTHERN EMBARCADERO SOUTH OF BRYANT
STREET.—The portion of the San Francisco, California,
waterfront area referred to in subsection (a) is as follows:
Beginning at the intersection of the northwesterly line of
Bryant Street with the southwesterly line of Spear Street,
which intersection lies on the line of jurisdiction of the
San Francisco Port Authority; following thence westerly
and southerly along said line of jurisdiction as described
in the State of California Harbor and Navigable Code Sec-
tion 1770, as amended in 1961, to its intersection with
the easterly line of Townsend Street produced southerly;
thence northerly along said easterly line of Townsend
Street produced to its intersection with the United States
Government pier-head line; thence following said pier-head
line westerly and northerly to its intersection with the ex-
isting boundary line of Piers 30/32, then northerly and
easterly along the existing boundary of Piers 30/32 until
its intersection with the United States Government pier-
head line, thence following said pier-head line westerly and
northerly to the northwesterly line of Bryant Street pro-
duced northwesterly; thence southwesterly along said
northwesterly line of Bryant Street produced to the point
of beginning.
196
(c) REQUIREMENT THAT AREA BE IMPROVED.—The
declaration of nonnavigability under subsection (a) applies
only to those parts of the area described in subsection (b)
that are or will be bulkheaded, filled, or otherwise occupied
by permanent structures and does not affect the applica-
bility of any Federal statute or regulation applicable to
such parts the day before the date of enactment of this
Act, including sections 9 and 10 of the Act of March 3,
1899 (33 U.S.C. 401 and 403; 30 Stat. 1151), commonly
known as the Rivers and Harbors Appropriation Act of
1899, section 404 of the Federal Water Pollution Control
Act (33 U.S.C. 1344), and the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(d) EXPIRATION DATE.—If, 20 years from the date
of enactment of this Act, any area or part thereof de-
scribed in subsection (b) is not bulkheaded or filled or oc-
cupied by permanent structures, including marina facili-
ties, in accordance with the requirements set out in sub-
section (c), or if work in connection with any activity per-
mitted in subsection (c) is not commenced within 5 years
after issuance of such permits, then the declaration of
nonnavigability for such area or part thereof shall expire.
SEC. 5036. SAN PABLO BAY WATERSHED AND SUISUN
MARSH ECOSYSTEM RESTORATION.
(a) SAN PABLO BAY WATERSHED, CALIFORNIA.—
197
(1) IN GENERAL.—The Secretary shall complete
work, as expeditiously as possible, on the ongoing
San Pablo Bay watershed, California, study to deter-
mine the feasibility of opportunities for restoring,
preserving and protecting the San Pablo Bay water-
shed.
(2) REPORT.—Not later than March 31, 2008,
the Secretary shall transmit to Congress a report on
the results of the study.
(c) SUISUN MARSH, CALIFORNIA.—The Secretary
shall conduct a comprehensive study to determine the fea-
sibility of opportunities for restoring, preserving and pro-
tecting the Suisun Marsh, California.
(d) SAN PABLO AND SUISUN BAY MARSH WATER-
SHED CRITICAL RESTORATION PROJECTS.—
(1) IN GENERAL.—The Secretary may partici-
pate in critical restoration projects that will produce,
consistent with Federal programs, projects, activi-
ties, immediate and substantial ecosystem restora-
tion, preservation and protection benefits in the fol-
lowing sub-watersheds of the San Pablo and Suisun
Bay Marsh watersheds:
(A) The tidal areas of the Petaluma River,
Napa-Sonoma Marsh.
198
(B) The shoreline of West Contra Costa
County.
(C) Novato Creek.
(D) Suisun Marsh.
(E) Gallinas-Miller Creek.
Participation in such critical restoration projects
may include assistance for planning, design or con-
struction.
(2) 
NON-FEDERAL
INTERESTS.—Notwith-
standing the requirements of section 221 of the
Flood Control Act of 1970 (42 U.S.C. 1962d–5b), a
nonprofit entity may serve, with the consent of the
affected local government, as a non-Federal sponsor
for a project undertaken pursuant to this section.
(3) COST SHARING.—Before carrying out any
project under this section, the Secretary shall enter
into a partnership agreement with the non-Federal
interest that shall require the non-Federal interest—
(A) to pay 35 percent of the cost of con-
struction for the project;
(B) to provide any lands, easements,
rights-of-way, dredged material disposal areas
and relocations necessary to carry out the
project; and
199
(C) to pay 100 percent of the operation,
maintenance, repair, replacement, and rehabili-
tation costs associated with the project.
(4) CREDIT.—The Secretary shall credit toward
the non-Federal share of the cost of construction of
a project under this section—
(A) the value of any lands, easements,
rights-of-way, dredged material disposal areas,
or relocations provided for carrying out the
project, regardless of the date of acquisition;
(B) funds received from the CALFED
Bay-Delta program; and
(C) the cost of the studies, design and con-
struction work carried out by the non-Federal
interest before the date of execution of a part-
nership agreement for the project if the Sec-
retary determines that the work is integral to
the project.
(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $40,000,000.
SEC. 5037. STOCKTON, CALIFORNIA.
(a) REEVALUATION.—The Secretary shall reevaluate
the feasibility of the Lower Mosher Slough element and
the levee extensions on the Upper Calaveras River element
200
of the project for flood control, Stockton Metropolitan
Area, California, carried out under section 211(f)(3) of the
Water Resources Development Act of 1996 (110 Stat.
3683), to determine the eligibility of such elements for re-
imbursement under section 211 of such Act (33 U.S.C.
701b–13).
(b) SPECIAL RULES FOR REEVALUATION.—In con-
ducting the reevaluation under subsection (a), the Sec-
retary shall not reject a feasibility determination based on
policies of the Corps of Engineers concerning the fre-
quency of flooding, the drainage area, and the amount of
runoff.
(c) REIMBURSEMENT.—If the Secretary determines
that the elements referred to subsection (a) are feasible,
the Secretary shall reimburse, subject to appropriations,
the non-Federal interest under section 211 of the Water
Resources Development Act of 1996 for the Federal share
of the cost of such elements.
SEC. 5038. UPPER KLAMATH BASIN, CALIFORNIA.
(a) DEFINITION OF UPPER KLAMATH BASIN.—In
this section, the term ‘‘Upper Klamath Basin’’ means the
counties of Klamath, Oregon, and Siskiyou and Modoc,
California.
(b) ESTABLISHMENT OF PROGRAM.—The Secretary
may establish a program to provide environmental assist-
201
ance to non-Federal interests in the Upper Klamath
Basin.
(c) FORM OF ASSISTANCE.—Assistance under this
section may be in the form of design and construction as-
sistance to improve the efficiency and use of existing water
supplies in the Upper Klamath Basin through water and
wastewater and ecosystem restoration projects, programs,
and infrastructure.
(d) OWNERSHIP REQUIREMENT.—The Secretary may
provide assistance for a project under this section only if
the project is publicly owned.
(e) PARTNERSHIP AGREEMENTS.—
(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.
202
(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 costs 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.
(B) CREDIT FOR WORK.—The non-Federal
interests shall receive credit for the reasonable
cost of design work on a project completed by
the non-Federal interest before entering into a
partnership agreement with the Secretary for
such project.
(C) CREDIT FOR INTEREST.—In case of a
delay in the funding of the non-Federal share
of a project that is the subject of an agreement
under this section, the non-Federal interest
shall receive credit for reasonable interest in-
curred in providing the non-Federal share of
the project’s costs.
203
(D) LAND, EASEMENTS, AND RIGHTS-OF-
WAY CREDIT.—The non-Federal interest shall
receive credit for land, easements, rights-of-
way, and relocations toward the non-Federal
share of project costs (including all reasonable
costs associated with obtaining permits nec-
essary for the construction, operation, and
maintenance of the project on publicly owned or
controlled land), but not to exceed 25 percent
of total project costs.
(E) OPERATION AND MAINTENANCE.—The
non-Federal share of operation and mainte-
nance costs for projects constructed with assist-
ance provided under this section shall be 100
percent.
(f) APPLICABILITY OF OTHER FEDERAL AND STATE
LAWS.—Nothing in this section waives, limits, or other-
wise affects the applicability of any provision of Federal
or State law that would otherwise apply to a project to
be carried out with assistance provided under this section.
(g) NONPROFIT ENTITIES.—Notwithstanding section
221(b) of the Flood Control Act of 1970 (42 U.S.C.
1962d–5b(b), for any project undertaken under this sec-
tion, a non-Federal interest may include a nonprofit entity
with the consent of the affected local government.
204
(h) CORPS OF ENGINEERS EXPENSES.—Ten percent
of the amounts appropriated to carry out this section may
be used by the Corps of Engineers district offices to ad-
minister projects under this section at 100 percent Fed-
eral expense.
(i) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$25,000,000. Such sums shall remain available until ex-
pended.
SEC. 5039. CHARLES HERVEY TOWNSHEND BREAKWATER,
CONNECTICUT.
The western breakwater for the project for naviga-
tion, New Haven Harbor, Connecticut, authorized by the
1st section of the Act entitled ‘‘An Act making appropria-
tions for the construction, repair, and preservation of cer-
tain public works on rivers and harbors, and for other pur-
poses’’, approved September 19, 1890 (26 Stat. 426),
shall be known and designated as the ‘‘Charles Hervey
Townshend Breakwater’’.
SEC. 5040. EVERGLADES RESTORATION, FLORIDA.
(a) COMPREHENSIVE PLAN.—
(1) HILLSBORO AND OKEECHOBEE AQUIFER.—
Section 601(b)(2)(A) of the Water Resources Devel-
opment Act of 2000 (114 Stat. 2681) is amended—
205
(A) in clause (i) by adding at the end the
following: ‘‘The project for aquifer storage and
recovery, Hillsboro and Okeechobee Aquifer,
Florida, authorized by section 101(a)(16) of the
Water Resources Development Act of 1999
(113 Stat. 276), shall be treated for purposes
of this section as being in the Plan.’’; and
(B) in clause (iii) by inserting after ‘‘sub-
paragraph (B)’’ the following: ‘‘and the project
for aquifer storage and recovery, Hillsboro and
Okeechobee Aquifer’’.
(2) 
OUTREACH
AND
ASSISTANCE.—Section
601(k) of such Act (114 Stat. 2691–2692) is
amended by adding at the end the following:
‘‘(3) MAXIMUM
EXPENDITURES.—The Sec-
retary may expend up to $3,000,000 per fiscal year
for fiscal years beginning after September 30, 2002,
to carry out this subsection.’’.
(b) CRITICAL
RESTORATION
PROJECTS.—Section
528(b)(3)(C) of the Water Resources Development Act of
1996 (110 Stat. 3769; 113 Stat. 286) is amended—
(1) in clause (i) by striking ‘‘$75,000,000’’ and
all that follows through ‘‘2003’’ and inserting
‘‘$95,000,000’’; and
206
(2) in clause (ii) by striking ‘‘$25,000,000’’ and
inserting ‘‘$30,000,000’’.
SEC. 5041. FLORIDA KEYS WATER QUALITY IMPROVE-
MENTS.
Section 109(e)(2) of Division B of the Miscellaneous
Appropriations Act, 2001 (enacted into law by Public Law
106–554) (114 Stat. 2763A–222) is amended by adding
at the end the following:
‘‘(C) CREDIT FOR WORK PRIOR TO EXECU-
TION OF THE PARTNERSHIP AGREEMENT.—The
Secretary shall credit toward the non-Federal
share of the cost of the project (i) the cost of
construction work carried out by the non-Fed-
eral interest before the date of the partnership
agreement for the project if the Secretary de-
termines that the work is integral to the
project; and (ii) the cost of land acquisition car-
ried out by the non-Federal interest for projects
to be carried out under this section.’’.
SEC. 5042. LAKE WORTH, FLORIDA.
The Secretary may carry out necessary repairs for
the Lake Worth bulkhead replacement project, West Palm
Beach, Florida, at an estimated total cost of $9,000,000.
207
SEC. 5043. LAKE LANIER, GEORGIA.
The Secretary may assist local interests with plan-
ning, design, and construction of facilities at the Lake La-
nier Olympic Center, Georgia, in support of the 2003
World Kayaking Championships, at a total cost of
$5,300,000.
SEC. 5044. RILEY CREEK RECREATION AREA, IDAHO.
The Secretary is authorized to carry out the Riley
Creek Recreation Area Operation Plan of the Albeni Falls
Management Plan, dated October 2001, for the Riley
Creek Recreation Area, Albeni Falls Dam, Bonner Coun-
ty, Idaho.
SEC. 5045. RECONSTRUCTION OF ILLINOIS FLOOD PROTEC-
TION PROJECTS.
(a) IN GENERAL.—The Secretary may participate in
the reconstruction of an eligible flood control project if the
Secretary determines that such reconstruction is not re-
quired as a result of improper operation and maintenance
of the project by the non-Federal interest.
(b) COST SHARING.—The non-Federal share of the
costs for the reconstruction of a flood control project au-
thorized by this section shall be the same Federal share
that was applicable to construction of the project. The
non-Federal interest shall be responsible for operation and
maintenance and repair of a project for which reconstruc-
tion is undertaken under this section.
208
(c) RECONSTRUCTION DEFINED.—In this section,
the term ‘‘reconstruction’’, as used with respect to a
project, means addressing major project deficiencies
caused by long-term degradation of the foundation, con-
struction materials, or engineering systems or components
of the project, the results of which render the project at
risk of not performing in compliance with its authorized
project purposes. In addressing such deficiencies, the Sec-
retary may incorporate current design standards and effi-
ciency improvements, including the replacement of obso-
lete mechanical and electrical components at pumping sta-
tions, if such incorporation does not significantly change
the scope, function, and purpose of the project as author-
ized.
(d) ELIGIBLE PROJECTS.—The following flood con-
trol projects are eligible for reconstruction under this sec-
tion:
(1) Wood River Drainage and Levee District,
Illinois, authorized as part of the navigation project
of the Upper Mississippi River basin by section 2 of
the Flood Control Act of June 28, 1938 (52 Stat.
1218).
(2) Clear Creek Drainage and Levee District,
Illinois, authorized by section 5 of the Flood Control
Act of June 22, 1936 (49 Stat. 1581).
209
(3) Fort Chartres and Ivy Landing Drainage
District, Illinois, authorized as part of the naviga-
tion project of the Upper Mississippi River basin by
section 2 of the Flood Control Act of June 22, 1938
(52 Stat. 1218).
(e) JUSTIFICATION.—The reconstruction of a project
authorized by this section shall not be considered a sepa-
rable element of the project.
(f) AUTHORIZATION OF APPROPRIATION.—There is
authorized to be appropriated $15,000,000 to carry out
this section. Such sums shall remain available until ex-
pended.
SEC. 5046. COOK COUNTY, ILLINOIS.
Section 219(f)(54) of the Water Resources Develop-
ment Act of 1992 (106 Stat. 4835; 113 Stat. 535; 114
Stat. 2763A-221) is amended—
(1) by striking ‘‘$35,000,000’’ and inserting the
following:
‘‘(A) IN GENERAL.—$35,000,000’’;
(2) by adding at the end the following:
‘‘(B) CREDIT.—The Secretary shall credit
toward the non-Federal share of the cost of the
project not to exceed $80,000 for the cost of
planning and design work carried out by the
non-Federal interest before, on, or after the
210
date of the partnership agreement for the
project if the Secretary determines that the
work is integral to the project.’’; and
(3) by aligning the remainder of the text of
subparagraph (A) (as designated by paragraph (1)
of this section) with subparagraph (B) (as added by
paragraph (2) of this section).
SEC. 5047. KASKASKIA RIVER BASIN, ILLINOIS, RESTORA-
TION.
(a) KASKASKIA RIVER BASIN DEFINED.—In this sec-
tion, the term ‘‘Kaskaskia River basin’’ means the
Kaskaskia River, Illinois, its backwaters, its side channels,
and all tributaries, including their watersheds, draining
into the Kaskaskia River.
(b) COMPREHENSIVE PLAN.—
(1) DEVELOPMENT.—The Secretary shall de-
velop, as expeditiously as practicable, a comprehen-
sive plan for the purpose of restoring, preserving,
and protecting the Kaskaskia River basin.
(2) TECHNOLOGIES
AND
INNOVATIVE
AP-
PROACHES.—The comprehensive plan shall provide
for the development of new technologies and innova-
tive approaches—
(A) to enhance the Kaskaskia River as a
transportation corridor;
211
(B) to improve water quality within the en-
tire Kaskaskia River basin;
(C) to restore, enhance, and preserve habi-
tat for plants and wildlife;
(D) to increase economic opportunity for
agriculture and business communities; and
(E) to reduce the impacts of flooding to
communities and landowners.
(3) SPECIFIC COMPONENTS.—The comprehen-
sive plan shall include such features as are necessary
to provide for—
(A) the development and implementation of
a program for sediment removal technology,
sediment characterization, sediment transport,
and beneficial uses of sediment;
(B) the development and implementation
of a program for the planning, conservation,
evaluation, and construction of measures for
fish and wildlife habitat conservation and reha-
bilitation, and stabilization and enhancement of
land and water resources in the basin;
(C) the development and implementation of
a long-term resource monitoring program;
212
(D) the development and implementation
of a computerized inventory and analysis sys-
tem; and
(E) the development and implementation
of a systemic plan to reduce flood impacts by
means of ecosystem restoration projects.
(4) CONSULTATION.—The comprehensive plan
shall be developed by the Secretary in consultation
with appropriate Federal agencies, the State of Illi-
nois, and the Kaskaskia River Coordinating Council.
(5) REPORT TO CONGRESS.—Not later than 2
years after the date of enactment of this Act, the
Secretary shall transmit to Congress a report con-
taining the comprehensive plan.
(6) ADDITIONAL
STUDIES
AND
ANALYSES.—
After transmission of a report under paragraph (5),
the Secretary shall conduct studies and analyses of
projects related to the comprehensive plan that are
appropriate and consistent with this subsection.
(c) GENERAL PROVISIONS.—
(1) WATER QUALITY.—In carrying out activi-
ties under this section, the Secretary’s recommenda-
tions shall be consistent with applicable State water
quality standards.
213
(2) PUBLIC PARTICIPATION.—In developing the
comprehensive plan under subsection (b), the Sec-
retary shall implement procedures to facilitate public
participation, including providing advance notice of
meetings, providing adequate opportunity for public
input 
and 
comment, 
maintaining 
appropriate
records, and making a record of the proceedings of
meetings available for public inspection.
(d) COORDINATION.—The Secretary shall integrate
activities carried out under this section with ongoing Fed-
eral and State programs, projects, and activities, including
the following:
(1) Farm programs of the Department of Agri-
culture.
(2) Conservation Reserve Enhancement Pro-
gram (State of Illinois) and Conservation 2000 Eco-
system Program of the Illinois Department of Nat-
ural Resources.
(3) Conservation 2000 Conservation Practices
Program and the Livestock Management Facilities
Act administered by the Illinois Department of Agri-
culture.
(4) National Buffer Initiative of the Natural
Resources Conservation Service.
214
(5) Nonpoint source grant program adminis-
tered by the Illinois Environmental Protection Agen-
cy.
(e) COST SHARING.—
(1) IN GENERAL.—The non-Federal share of
the cost of activities carried out under this section
shall be 35 percent.
(2) IN-KIND
SERVICES.—The Secretary may
credit the cost of in-kind services provided by the
non-Federal interest for an activity carried out
under this section toward not more than 80 percent
of the non-Federal share of the cost of the activity.
In-kind services shall include all State funds ex-
pended on programs that accomplish the goals of
this section, as determined by the Secretary. The
programs may include the Kaskaskia River Con-
servation Reserve Program, the Illinois Conservation
2000 Program, the Open Lands Trust Fund, and
other appropriate programs carried out in the
Kaskaskia River basin.
SEC. 5048. NATALIE CREEK, MIDLOTHIAN AND OAK FOR-
EST, ILLINOIS.
The Secretary shall carry out a project for flood dam-
age reduction under section 205 of the Flood Control Act
of 1948 (33 U.S.C. 701s) Natalie Creek, Midlothian and
215
Oak Forest, Illinois, if the Secretary determines that the
project is feasible.
SEC. 5049. PEORIA RIVERFRONT DEVELOPMENT, PEORIA,
ILLINOIS.
The Secretary may carry out the project for Peoria
riverfront development, Peoria, Illinois, under section 519
of the Water Resources Development Act of 2000 (114
Stat. 2653–2655), at a total cost of $16,000,000, with
an estimated Federal cost of $10,400,000 and an esti-
mated non-Federal cost of $5,600,000.
SEC. 5050. ILLINOIS RIVER BASIN RESTORATION.
(a) 
EXTENSION
OF
AUTHORIZATION.—Section
519(c)(2) of the Water Resources Development Act of
2000 (114 Stat. 2654) is amended by striking ‘‘2004’’ and
inserting ‘‘2010’’.
(b) IN-KIND SERVICES.—Section 519(g)(3) of such
Act (114 Stat. 2655) is amended by inserting before the
period at the end of the first sentence ‘‘if such services
are provided not more than 5 years before the date of initi-
ation of the project or activity’’.
SEC. 5051. SOUTHWEST ILLINOIS.
(a) DEFINITION OF SOUTHWEST ILLINOIS.—In this
section, the term ‘‘Southwest Illinois’’ means the counties
of Madison, St. Clair, Monroe, Randolph, Perry, Franklin,
216
Jackson, Union, Alexander, Pulaski, and Williamson, Illi-
nois.
(b) ESTABLISHMENT OF PROGRAM.—The Secretary
may establish a program to provide environmental assist-
ance to non-Federal interests in Southwest Illinois.
(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
Southwest Illinois, including projects for wastewater treat-
ment and related facilities, water supply and related facili-
ties, and surface water resource protection and develop-
ment.
(d) OWNERSHIP REQUIREMENT.—The Secretary may
provide assistance for a project under this section only if
the project is publicly owned.
(e) PARTNERSHIP AGREEMENTS.—
(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:
217
(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 costs 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.
(B) CREDIT FOR WORK.—The non-Federal
interests shall receive credit for the reasonable
cost of design work on a project completed by
the non-Federal interest before entering into a
partnership agreement with the Secretary for
such project.
(C) CREDIT FOR INTEREST.—In case of a
delay in the funding of the non-Federal share