(G) restoring and maintaining ecological 
integrity and biodiversity of National Forest 
System lands. 
(b) TERMS AND CONDITIONS.—The Secretary shall 
require such terms and conditions as are necessary to pro-
tect the public investments, including terms related to 
ownership of facilities or improvements, and such addi-
tional terms and conditions as are mutually agreed to by 
the Secretary and the cooperator. 
(c) LIMITATION.—The Secretary may not enter into 
an agreement under this section where a procurement con-
tract, grant, or cooperative agreement under chapter 63 
of title 31, United States Code, would be appropriate. 
SEC. 5. COST SHARING. 
(a) SHARING OF COSTS.—The manner in which costs 
shall be shared between the Secretary and a cooperator, 
including acceptance of in-kind contributions, shall be pro-
vided for in the agreement entered into with the coop-
erator under section 4. The Secretary shall issue guidance 
for cost sharing with cooperators. 
(b) TREATMENT
OF CONTRIBUTIONS
OF VOLUN-
TEERS.—The value of services performed by persons who 
volunteer their services to the Forest Service and who are 
recruited, trained, and supported by a cooperator under 
an agreement under section 4 may be considered an in-
kind contribution of the cooperator for purposes of cost 
sharing under subsection (a) 
SEC. 6. FUNDS. 
(a) DEPOSIT OF FUNDS.—Except as provided in sub-
section (b), all monies received from a cooperator as con-
tributions toward cooperative activities under an agree-
ment entered into under section 4 shall be— 
(1) deposited in the Forest Service Cooperative 
Work Trust Fund established pursuant to the penul-
timate paragraph under the heading ‘‘FOREST SERV-
ICE’’ in the Act of June 30, 1914 (16 U.S.C. 498), 
or the successor of that fund; and 
(2) available to the Secretary, without further 
appropriation and until expended, to carry out the 
agreement. 
(b) FUNDS COLLECTED.—Funds collected under an 
agreement entered into under section 4 from the sale of 
materials, products, programs, and services on behalf of 
a cooperators, as authorized by subsection (a)(2)(F) of 
such section, are not the property of the United States, 
and the Secretary shall forward such funds to the coop-
erator. 
(c) 
ADVANCEMENT
OR
REIMBURSEMENT
OF 
FUNDS.—In an agreement entered into under section 4, 
the Secretary may advance or reimburse funds to a coop-
erator from any Forest Service appropriation available for 
similar work without regard to the provisions of subsection 
(a) and (b) of section 3324 of title 31, United States Code, 
and may furnish or share supplies, facilities, or equipment. 
The Secretary may advance funds under this subsection 
only when the advancement represents the Secretary’s 
share of costs of activities or services under the agreement 
and the cooperator is not obligated to reimburse the Sec-
retary. 
SEC. 7. WATERSHED RESTORATION AND ENHANCEMENT 
AGREEMENTS. 
(a) IN GENERAL.—Notwithstanding chapter 63 of 
title 31, United States Code, to the extent funds are other-
wise available, the Secretary may use appropriations for 
the Forest Service to enter into cooperative agreements 
with an eligible entity to carry out activities on National 
Forest System lands or non-Federal lands within a water-
shed for the following purposes: 
(1) The protection, restoration, and enhance-
ment of resources, including fish and wildlife habi-
tat. 
(2) The reduction of risk from natural disasters 
where public safety is threatened. 
(b) TERMS AND CONDITIONS.—
(1) REQUIRED TERMS.—In order for the Sec-
retary to enter into a watershed restoration and en-
hancement agreement authorized in subsection (a), 
the agreement shall— 
(A) include such terms and conditions mu-
tually agreed to by the Secretary and other par-
ties to the agreement; 
(B) improve the viability of and otherwise 
benefit the fish, wildlife, and other resources on 
National Forest System lands within the water-
shed; 
(C) authorize the provision of technical as-
sistance by the Secretary in the planning of 
management activities that will further the pur-
poses of the agreement; 
(D) provide for the sharing of costs of im-
plementing the agreement among the parties to 
the agreement, as mutually agreed on by the 
parties; 
(E) ensure that any expenditure by the 
Secretary pursuant to the agreement is deter-
mined by the Secretary to be in the public in-
terest; and 
(2) ADDITIONAL TERMS.—The Secretary may 
include such additional terms and conditions in the
watershed restoration and enhancement agreement 
as the Secretary considers necessary to protect the 
public investment on non-Federal land, so long as 
the terms and conditions are mutually agreed to by 
the other parties to the agreement. 
(c) ACTIVITIES ON NON-FEDERAL LAND.—Activities 
on non-Federal land provided for under an agreement 
under this section must benefit resources on National For-
est System lands or non-Federal lands so as to provide 
a direct or indirect benefit to resources on National Forest 
System lands. 
(d) DEFINITION OF ELIGIBLE ENTITY.—In this sec-
tion, the term ‘‘eligible entity’’ means— 
(1) a Federal agency; 
(2) a Tribal, State or local government; 
(3) a private individual or organization; or 
(4) a nonprofit organization. 
SEC. 8. REPEAL OF SUPERSEDED AUTHORITIES. 
(a) EDUCATIONAL MATERIALS
AND CHALLENGE 
COST-SHARE
PROGRAM.—The 
thirteenth 
paragraph 
under the heading ‘‘ADMINISTRATIVE PROVISIONS, FOR-
EST SERVICE’’ in title II of the Department of the Interior 
and Related Agencies Appropriations Act, 1992 (Public 
Law 102–154; 105 Stat. 1018; 31 U.S.C. 6305 note), is 
repealed.