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law, that diminishes the fair market value of that property
by 331⁄3 percent or more, for that diminution in value.
SEC. 3. EFFECT OF STATE LAW.
No compensation shall be made under this Act if the
use limited by Federal agency action is proscribed under
the law of the State in which the property is located (other
than a proscription required by a Federal law, either di-
rectly or as a condition for assistance). If a use is a nui-
sance as defined by the law of a State, that use is pro-
scribed for the purposes of this subsection.
SEC. 4. EXCEPTIONS.
(a) PREVENTION
OF HAZARD
TO HEALTH
AND
SAFETY OR DAMAGE TO SPECIFIC PROPERTY.—No com-
pensation shall be made under this Act with respect to
an agency action the purpose of which is to prevent an
imminent and identifiable—
(1) hazard to public health and safety; or
(2) damage to specific property other than the
property whose use is limited.
(b) NAVIGATIONAL SERVITUDE.—No compensation
shall be made under this Act with respect to an agency
action pursuant to the Federal navigational servitude.
SEC. 5. PROCEDURE.
(a) REQUEST OF OWNER.—An owner seeking com-
pensation under this Act shall make a written request for
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compensation to the agency whose agency action resulted
in the limitation. No such request may be made later than
180 days after the owner receives actual notice of that
agency action.
(b) NEGOTIATIONS.—The agency may bargain with
that owner to establish the amount of the compensation.
If the agency and the owner agree to such an amount,
the agency shall promptly pay the owner the amount
agreed upon.
(c) CHOICE OF REMEDIES.—If, not later than 180
days after the written request is made, the parties do not
come to an agreement, the owner may choose to take the
issue to binding arbitration or seek compensation in a civil
action.
(d) ARBITRATION.—The procedures that govern the
arbitration shall, as nearly as practicable, be those estab-
lished under title 9, United States Code, for arbitration
proceedings to which that title applies. An award made
in such arbitration shall include a reasonable attorney’s
fee and appraisal fees. The agency shall promptly pay any
award made to the owner.
(e) CIVIL ACTION.—An owner who does not choose
arbitration, or who does not receive prompt payment when
required by this section, may obtain appropriate relief in
a civil action against the agency. An owner who prevails.
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in a civil action under this section shall be entitled to, and
the agency shall be liable for, a reasonable attorney’s fee
and appraisal fees. The court shall award interest on the
amount of any compensation from the time of the limita-
tion.
(f) SOURCE
OF PAYMENTS.—Any payment made
under this section to an owner, and any judgment obtained
by an owner in a civil action under this section shall, not-
withstanding any other provision of law, be made from the
annual appropriation of the agency whose action occa-
sioned the payment or judgment. If the agency action re-
sulted from a requirement imposed by another agency,
then the agency making the payment or satisfying the
judgment may seek partial or complete reimbursement
from the appropriated funds of the other agency. For this
purpose the head of the agency concerned may transfer
or reprogram any appropriated funds available to the
agency. If insufficient funds exist for the payment or to
satisfy the judgment, it shall be the duty of the head of
the agency to seek the appropriation of such funds for the
next fiscal year.
SEC. 6. DEFINITIONS.
For the purposes of this Act—
(1) the term ‘‘property’’ means land and in-
cludes the right to use or receive water;
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(2) a use of property is limited by an agency
action if a particular legal right to use that property
no longer exists because of the action;
(3) 
the 
term 
‘‘specified 
regulatory 
law’’
means—
(A) section 404 of the Federal Water Pol-
lution Control Act (33 U.S.C. 1344);
(B) the Endangered Species Act of 1973
(16 U.S.C. 1531 et seq.); or
(C) subtitle C of title XII of the Food Se-
curity Act of 1985;
(4) the term ‘‘agency action’’ has the meaning
given that term in section 551 of title 5, United
States Code, but also includes the making of a grant
to a public authority conditioned upon an action by
the recipient that would constitute a limitation if
done directly by the agency;
(5) the term ‘‘agency’’ has the meaning given
that term in section 551 of title 5, United States
Code;
(6) the term ‘‘State’’ includes the District of
Columbia, Puerto Rico, and any other territory or
possession of the United States; and
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(7) the term ‘‘law of the State’’ includes the
law of a political subdivision of a State.
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