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(c) PROJECT JUSTIFICATION.—
(1) Notwithstanding any other provision of law
or requirement for economic justification established
pursuant to 42 U.S.C. 1962–2, the Secretary may
implement a project under this authority provided
the Secretary determines that the project—
(A) will significantly reduce potential flood
damages;
(B) will improve the quality of the environ-
ment; and
(C) is justified considering all costs and
beneficial outputs of the project.
(2) Within 180 days of the date of enactment
of this section the Secretary shall develop criteria for
selecting and rating the projects to be carried out as
a part of the Program authorized by this section and
shall establish policies and procedures for carrying
out the studies and projects undertaken under this
authority.
(d) REPORTING REQUIREMENT.—The Secretary may
not implement a project under this authority until—
(1) the Secretary provides to the appropriate
committees of Congress a written notification de-
scribing the project and the determinations reached
pursuant to subsection (c); and
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(2) a period of 21 calendar days has expired
following the date on which the notification was re-
ceived by the Committees.
(e) PROGRAM REVIEW.—The program established
pursuant to this section shall be subject to an independent
review to evaluate the efficiency of the program in achiev-
ing the dual goals of flood hazard mitigation and eco-
system restoration. The Secretary shall transmit a report
on the findings of the review conducted under this sub-
section to the Congress by April 2004, together with any
recommendations for continuing the program.
(f) PER
PROJECT
LIMITATION.—No more than
$75,000,000 in Army Civil Works appropriations may be
expended on any single project undertaken under this au-
thority.
(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$25,000,000 for each fiscal year for fiscal years 1999 and
2000; $50,000,000 for fiscal year 2001; and $75,000,000
for each fiscal year for fiscal years 2002 through 2004.
All studies and projects undertaken under this authority
from Army Civil Works appropriations shall be fully fund-
ed within the program funding levels provided in this sub-
section.
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SEC. 5. SHORE PROTECTION.
Section 103(d) of the Water Resources Development
Act of 1986 (100 Stat. 4085–5086) is amended by—
(1) inserting the following immediately before
the phrase ‘‘Costs of constructing projects or meas-
ures for beach erosion control’’:
‘‘(1) CONSTRUCTION.—’’; and
(2) inserting a new paragraph (2) as follows:
‘‘(2) PERIODIC NOURISHMENT.—The non-Fed-
eral cost of the periodic nourishment of projects or
measures for shore protection or beach erosion con-
trol shall be 65 percent, except that all costs as-
signed to benefits to privately owned shores (where
use of such shores is limited to private interests) or
to prevention of losses of private lands shall be
borne by the non-Federal interest and all costs as-
signed to the protection of federally owned shores
shall be borne by the United States.’’.
SEC. 6. SMALL FLOOD CONTROL PROJECTS.
Section 205 of the Flood Control Act of 1948 as
amended (33 U.S.C. 701s) is further amended by—
(1) striking ‘‘construction of small projects’’
and inserting in lieu thereof ‘‘implementation of
small structural and nonstructural projects’’; and
(2) striking ‘‘$5,000,000’’ and inserting in lieu
thereof ‘‘$7,000,000’’.
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SEC. 7. USE OF NON-FEDERAL FUNDS FOR COMPILING AND
DISSEMINATING INFORMATION ON FLOODS
AND FLOOD DAMAGES.
Section 206(b) of the Flood Control Act of 1960 as
amended (33 U.S.C. 709a(b)) is further amended by add-
ing the following language immediately following the word
‘‘section’’ in the last sentence of that subsection: ‘‘, except
that this limitation on fees shall not apply to funds volun-
tarily contributed by such entities for the purpose of ex-
panding the scope of the services requested by such enti-
ties’’.
SEC. 8. EVERGLADES AND SOUTH FLORIDA ECOSYSTEM
RESTORATION.
Subsections (b)(3)(B) and (b)(3)(C)(i) of section 528
of the Water Resources Development Act of 1996 (110
Stat. 3769) are amended by striking ‘‘1999’’ and inserting
in lieu thereof ‘‘2000’’.
SEC. 9. AQUATIC ECOSYSTEM RESTORATION.
Section 206(c) of the Water Resources Development
Act of 1996 (110 Stat. 3679–3680) is amended by insert-
ing a new sentence at the end thereof as follows: ‘‘Not-
withstanding 42 U.S.C. 1962d–5b(b), for any project un-
dertaken under this authority, a non-Federal interest may
also include a non-profit entity.’’.
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SEC. 10. BENEFICIAL USES OF DREDGED MATERIAL.
Section 204 of the Water Resources Development Act
of 1992 (106 Stat. 4826) as amended by section 207 of
the Water Resources Development Act of 1996 (110 Stat.
3680) is further amended by—
(1) striking ‘‘cooperative agreement in accord-
ance with the requirements of section 221 of the
Flood Control Act of 1970’’ from subsection (c) and
inserting in lieu thereof ‘‘binding agreement with the
Secretary’’; and
(2) inserting a new subsection (g) as follows:
‘‘(g) NON-FEDERAL INTERESTS.—Notwithstanding
42 U.S.C. 1962d–5b(b), for any project carried out under
this section, a non-Federal interest may also include a
non-profit entity.’’.
SEC. 11. COOPERATIVE AGREEMENTS FOR NATURAL RE-
SOURCES, 
ENVIRONMENTAL 
PROTECTION,
CONSERVATION, AND RECREATION MEAS-
URES.
The Secretary is authorized to enter into cooperative
agreements with non-Federal public bodies and non-profit
entities for the purpose of facilitating collaborative efforts
involving environmental protection and restoration, natu-
ral resources, conservation, and recreation in connection
with the development, operation, and management of
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water resources projects under the jurisdiction of the De-
partment of the Army.
SEC. 12. CONTRIBUTIONS BY STATES AND POLITICAL SUB-
DIVISIONS.
Section 5 of the Flood Control Act of 1936 as amend-
ed by Public Law 208, 75th Congress (33 U.S.C. 701h)
is further amended by inserting the words ‘‘or environ-
mental restoration’’ after the words ‘‘flood control’’.
SEC. 13. RECREATION USER FEES.
(a) During fiscal years 1999 through 2002, the Sec-
retary may withhold from the special account established
pursuant to 16 U.S.C. 460l–6a(i)(1)(A) 100 percent of the
amount of receipts above a base line of $34,000,000 per
each fiscal year received from fees imposed at recreation
sites under the administrative jurisdiction of the Depart-
ment of the Army pursuant to 16 U.S.C. 460l–6a(b). The
amounts withheld shall be retained by the Secretary and
shall be available, without further appropriation, for ex-
penditure by the Secretary in accordance with the provi-
sions of this section. Such amounts shall remain available
through September 30, 2005.
(b) In order to increase the quality of the visitor expe-
rience at public recreational areas and to enhance the pro-
tection of resources, the amounts withheld pursuant to
subsection (a) and available for expenditure may only be
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used for backlogged repair and maintenance projects (in-
cluding projects relating to health and safety) and for in-
terpretation, signage, habitat or facility enhancement, re-
source preservation, annual operation (including fee collec-
tion), maintenance, and law enforcement related to public
use.
(c)(1) Eighty percent of the total amount withheld
by the Secretary shall be available for expenditure without
further appropriation at the specific site from which such
funds, above baseline, are collected, and shall be accounted
for separately.
(2) Twenty percent of the total amount withheld by
the Secretary shall be available for expenditure without
further appropriation for use on an agency-wide basis and
shall be accounted for separately.
SEC. 14. SHORELINE MANAGEMENT PROGRAM FEES.
No later than 12 months after the date of enactment
of this Act and every five years thereafter, the Secretary
shall review the Shoreline Management Program adminis-
tered by the Army Corps of Engineers at water resources
development projects under the jurisdiction of the Depart-
ment of the Army to determine the costs associated with
administering the Program. Each review conducted pursu-
ant to this section shall include an analysis of the fee
schedule in place at the time the review is initiated. If
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the Secretary determines that adjustments to the fee
schedule are necessary in order to ensure collection of rev-
enues sufficient to cover the costs of administering the
Program, the Secretary may make those adjustments in
accordance with applicable regulations.
SEC. 15. WATER RESOURCES DEVELOPMENT STUDIES FOR
THE PACIFIC REGION.
Section 444 of the Water Resources Development Act
of 1996 (110 Stat. 3747) is amended by striking the
phrase ‘‘interest of navigation’’ and inserting the following
in lieu thereof: ‘‘interests of water resources development,
including navigation, flood damage reduction, and environ-
mental restoration’’.
SEC. 16. WATER RESOURCES FOUNDATION.
(a) ESTABLISHMENT.—There is established the
Water Resources Foundation (hereinafter referred to as
the ‘‘Foundation’’) as a charitable and nonprofit corpora-
tion domiciled in the District of Columbia, which is not
an agency or establishment of the United States.
(b) PURPOSES.—The purposes of the Foundation are
to—
(1) encourage, accept, and administer private
gifts of money, and of real and personal property for
the benefit of, or in connection with, the activities
and services of the Army Corps of Engineers in
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managing natural resources at water resources de-
velopment projects administered by the Department
of the Army;
(2) undertake and conduct such other activities
as will further the conservation and management of
natural, scenic, historic and recreational resources at
such projects;
(3) further a stewardship ethic among Amer-
ican citizens to conserve and utilize the diverse natu-
ral resources available at such projects;
(4) initiate and support programs that broaden
and enhance the services, facilities, and educational
and interpretive activities for visitors to such
projects; and
(5) strengthen and improve the various means
by which the Army Corps of Engineers uses its
human and financial resources to manage the natu-
ral resources at such projects.
(c) LIMITATIONS AND CONFLICTS OF INTERESTS.—
(1) The Foundation shall not participate or in-
tervene in a political campaign on behalf of any can-
didate for public office.
(2) No director, officer, or employee of the
Foundation shall participate, directly or indirectly,
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in the consideration or determination of any ques-
tion before the Foundation affecting—
(A) the financial interests of the director,
officer, or employee; or
(B) the interests of any corporation part-
nership, entity, or organization in which such
director, officer, or employee—
(i) is an officer, director, or trustee;
or
(ii) has any direct or indirect financial
interest.
(d) TAX EXEMPT STATUS.—For purposes of section
501(c)(3) of title 26 of the United States Code, the Foun-
dation shall be treated as organized and operated exclu-
sively for charitable purposes in calendar years 1998 and
1999. For calendar years 2000 and thereafter, the Foun-
dation shall be required to maintain its tax exempt status
in the manner as prescribed by the Secretary of the Treas-
ury for similar tax exempt organizations.
(e) BOARD OF DIRECTORS AND GOVERNANCE OF
THE FOUNDATION.—
(1) The Foundation shall have a governing
Board of Directors (hereinafter referred to as the
‘‘Board’’), which shall consist of nine Directors, each
of whom shall be a United States citizen and none
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of whom shall be an employee of the Federal govern-
ment. Members of the Board shall be appointed by
the Secretary and shall be educated in or have ac-
tual experience in natural or cultural resource man-
agement, recreation management, or law. To the ex-
tent practicable, the membership of the Board shall
represent diverse points of view relating to natural
and cultural resource issues. The Secretary or a des-
ignee shall serve as a liaison to the Board. Appoint-
ment to the Board shall not constitute employment
by, or the holding of an office of, the United States
for the purposes of any Federal law.
(2) Within one year after the date of enactment
of this Act, the Secretary shall appoint the initial
members of the Board of Directors. Of these initial
members, three shall be appointed for a term of two
years, three members shall be appointed for a term
of three years, and three members shall be appointed
for a term of four years. All subsequent appoint-
ments to the Board shall be for a term of four years.
(3) The Chairperson shall be elected by the
Board from its members. A chairperson shall serve
for a two-year term and may be re-elected to the
post during the Chairperson’s tenure as a Director.
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(4) A majority of the current voting member-
ship of the Board shall constitute a quorum for the
transaction of business.
(5) The Board shall meet at the call of the
Chairperson at least once a year. If a Director
misses three consecutive regularly scheduled meet-
ings, that individual may be removed from the
Board by majority vote of the Board of Directors
and that vacancy filled in accordance with paragraph
(2) of this subsection.
(6) Voting members of the Board shall serve
without pay, but may be reimbursed for the actual
and necessary traveling and subsistence expenses in-
curred by them in the performance of their duties
for the Foundation. Such reimbursement may not
exceed such amount as would be authorized under
section 5703 of title 5, for the payment of expenses
and allowances for individuals employed intermit-
tently in the Federal Government service.
(7) The Board may complete the organization
of the Foundation by appointing employees, adopt-
ing a constitution and bylaws consistent with the
purposes of the Foundation and the provisions of
this section, and undertaking such acts as may be
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necessary to function and carry out the provisions of
this section.
(8) Officers and employees shall not be ap-
pointed or hired by the Board until the Foundation
has sufficient funds to pay for their services. Such
officers or employees of the Foundation shall not be
considered Federal employees for any purpose, in-
cluding the provisions of title 5, governing appoint-
ments in the competitive service, and may be paid
without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, except
that no individual so appointed may receive pay in
excess of the annual rate of basic pay in effect for
Level V of the Executive Schedule.
(9) Prior to the appointment or hiring of any
other individual, the Board shall appoint an individ-
ual to serve as the Executive Director of the Board,
who shall serve at the direction of the Board as its
chief operating officer and who shall be knowledge-
able and experienced in matters relating to natural
and cultural resource management.
(f) CORPORATE POWERS AND OBLIGATIONS.—
(1) The Foundation—
(A) shall have perpetual succession;
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(B) may conduct business throughout the
several States, territories, and possessions of
the United States;
(C) shall have its principal offices in the
Washington, DC, metropolitan area; and
(D) shall at all times maintain a des-
ignated agent in the District of Columbia au-
thorized to accept service of process for the
Foundation.
(2) The serving of notice to, or service of proc-
ess upon, the agent required under this subsection,
or mailed to the business address of such agent,
shall be deemed as service upon or notice to the
Foundation.
(3) The Foundation shall have an official seal
selected by the Board which shall be judicially no-
ticed.
(4) To carry out its purposes, the Foundation
shall have, in addition to powers otherwise author-
ized under this section, the usual powers of a cor-
poration in the District of Columbia, including the
power—
(A) to accept, receive, solicit, hold, admin-
ister and use any gift, devise, or bequest, either
absolutely or in trust, of real or personal prop-
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erty or any income therefrom or other interest
therein;
(B) to acquire by purchase or exchange
any real or personal property or interest there-
in;
(C) unless otherwise required by the in-
strument of transfer, to sell, donate, lease, in-
vest, reinvest, retain or otherwise dispose of any
property or income therefrom;
(D) to sue and be sued, and complain and
defend itself in any court of competent jurisdic-
tion, except that the Directors of the Board
shall not be personally liable, except for gross
negligence;
(E) to enter into contracts or other ar-
rangements with public agencies, private orga-
nizations, and persons and to make such pay-
ments as may be necessary to carry out its
functions; and
(F) to do any and all acts necessary and
proper to carry out the purposes of the Founda-
tion.
(g) PROPERTY.—
(1) The Foundation may acquire, hold, and dis-
pose of lands, waters, or other interests in real prop-
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erty by donation, gift, devise, purchase or exchange.
For the purposes of this section, an interest in real
property shall include, but not be limited to, mineral
and water rights, rights of way, and easements ap-
purtenant or in gross. Nothing in this section shall
be construed to be applied to real or personal prop-
erty of the United States of America.
(2) No lands or waters, or interests therein,
that are owned by the Foundation and are deter-
mined by the Secretary to be valuable for purposes
established in this section shall be subject to con-
demnation by any State or political subdivision, or
any agent or instrumentality thereof.
(h) ADMINISTRATIVE SUPPORT.—The Secretary may
reimburse the Foundation for expenses incurred pursuant
to subsection (e) of this section, except that reimburse-
ment for traveling and subsistence payments may not ex-
ceed then current Federal Government per diem rates.
(i) AUDITS AND REPORT REQUIREMENTS.—
(1) For purposes of the Act entitled ‘‘An Act
for audit of accounts of private corporations estab-
lished under Federal law’’, approved August 30,
1964 (36 U.S.C. 1101 through 1103; Public Law
88–504) the Foundation shall be treated as a pri-
vate corporation established under Federal law.
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(2) The Foundation shall transmit to the Sec-
retary each year a report of its proceedings and ac-
tivities of the previous year, including a full and
complete statement of its receipts, expenditures, and
investments.
(j) RELEASE FROM LIABILITY.—The United States
shall not be liable for any debts, defaults, acts or omissions
of the Foundation nor shall the full faith and credit of
the United States extend to any obligations of the Foun-
dation.
(k) ACTIVITIES OF THE FOUNDATION AND ARMY
CORPS OF ENGINEERS.—The activities of the Foundation,
authorized under the provisions of this Act shall be supple-
mental to and shall not preempt any authority or respon-
sibility of the Army Corps of Engineers under any other
provision of law.
(l) AUTHORIZATION OF APPROPRIATIONS.—For the
purposes of reimbursing providing the Foundation for cer-
tain costs, as provided for in subsection (h) of this section,
there is authorized to be appropriated to the Department
of the Army $300,000 for each of fiscal years 1999, 2000,
and 2001.
SEC. 17. REGULATORY PROGRAM FUNDING.
(a) The Secretary shall establish and collect fees from
permit applicants for the evaluation of commercial permit
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applications; the preparation of Environmental Impact
Statements as required by the National Environmental
Policy Act of 1969 in connection with such commercial
permit applications; and the delineation of wetlands for
major developments affecting wetlands.
(b) There is hereby established as a special account
in the Treasury of the United States the ‘‘Army Civil
Works Regulatory Program Account’’ (hereafter referred
to as the ‘‘Regulatory Program Account’’) into which shall
be deposited fees collected by the Secretary pursuant to
subsection (a) of this section. Amounts deposited into the
Regulatory Program Account shall be available to the Sec-
retary, as provided in Appropriation Acts, to apply toward
the costs incurred by the Department of the Army in ad-
ministering laws pertaining to the regulation of the navi-
gable waters of the United States including wetlands, in
addition to appropriations otherwise available for the same
purpose.
SEC. 18. FLOOD MITIGATION NEAR PIERRE, SOUTH DA-
KOTA.
(a) GENERAL.—(1) To provide full operation capabil-
ity to carry out the authorized purposes of the Missouri
River Main Stem dams that are part of the Pick-Sloan
Missouri River Basin Program authorized by section 9 of
the Act entitled ‘‘An Act authorizing the construction of
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certain public works on rivers and harbors for flood con-
trol, and other purposes’’ approved December 22, 1944,
the Secretary may acquire from willing sellers such land
and property in the vicinity of Pierre, South Dakota, or
floodproof or relocate such property within the project
area, as the Secretary determines is adversely affected by
the full wintertime Oahe Powerplant releases, provided
that non-Federal interests pay 35 percent of the cost of
the work. Any lands that are acquired under this authority
will be kept in public ownership and will be dedicated and
maintained in perpetuity for a use that is compatible with
any remaining flood threat.
(2) The Secretary may not obligate funds to imple-
ment this section until the Secretary has completed a re-
port addressing the criteria for selecting which properties
are to be acquired, relocated or floodproofed, and a plan
for implementing such measures. This report should be
completed no later than one year after funding is made
available. The report and implementation plan should be
coordinated with the Federal Emergency Management
Agency, and both should be prepared in consultation with
other Federal agencies, and State and local officials, and
residents. Such report should take into account informa-
tion from prior and ongoing studies.
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(b) STUDY COST-SHARING REQUIREMENTS.—The
cost of studies conducted under this authority shall be
shared in accordance with section 105 of the Water Re-
sources Development Act of 1986 (100 Stat. 4088–4089),
as amended.
(c) AUTHORIZATION FOR APPROPRIATIONS.—There
is authorized to be appropriated to carry out this section
funds not to exceed $25,000,000.
SEC. 19. LOWER MISSOURI RIVER AQUATIC RESTORATION
PROJECTS.
(a) IN GENERAL.—Not later than one year after
funds are made available for such purposes, the Secretary
shall finalize a comprehensive report—
(1) identifying a general implementation strat-
egy and overall plan for environmental restoration
and protection along the Lower Missouri River be-
tween Gavins Point Dam and the confluence of the
Missouri and Mississippi Rivers; and
(2) recommending individual environmental res-
toration projects that can be considered by the Sec-
retary for implementation under section 206 of the
Water Resources Development Act of 1996 (110
Stat. 3679–3680).
(b) SCOPE OF PROJECTS.—Any environmental res-
toration projects carried out pursuant to subsection (a)
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shall provide for such activities and measures as the Sec-
retary determines to be necessary to protect and restore
fish and wildlife habitat without adversely affecting pri-
vate property rights or water related needs of the region
surrounding the Missouri River, including flood control,
navigation, and enhancement of water supply and shall in-
clude some or all of the following components:
(1) modification and improvement of navigation
training structures to protect and restore fish and
wildlife habitat;
(2) modification and creation of side channels
to protect and restore fish and wildlife habitat;
(3) restoration and creation of island fish and
wildlife habitat;
(4) creation of riverine fish and wildlife habitat;
and
(5) physical and biological monitoring for evalu-
ating the success of the projects.
(c) COORDINATION.—The Secretary shall, to the
maximum extent practicable, integrate projects carried out
in accordance with this section with other Federal, Tribal,
and State restoration activities.
(d) COST SHARING.—The report to be carried out
pursuant to subsection (a) shall be undertaken at full Fed-
eral expense.
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SEC. 20. PAYMENT OPTION, MOOREFIELD, WEST VIRGINIA.
The Secretary may permit the non-Federal sponsor
for the project for flood control, Moorefield, West Virginia,
to pay without interest the remaining non-Federal cost
over a period not to exceed thirty years to be determined
by the Secretary.
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