SEC. 2012. BENEFICIAL USES OF DREDGED MATERIAL. 
(a) IN GENERAL.—Section 204 of the Water Resources 
Development Act of 1992 (33 U.S.C. 2326) is amended by 
striking subsections (c) through (g) and inserting the fol-
lowing: 
‘‘(c) IN GENERAL.—The Secretary may carry out 
projects to transport and place sediment obtained in con-
nection with the construction, operation, or maintenance of 
an authorized water resources project at locations selected 
by a non-Federal entity for use in the construction, repair, 
or rehabilitation of projects determined by the Secretary to 
be in the public interest and associated with navigation, 
flood damage reduction, hydroelectric power, municipal 
and industrial water supply, agricultural water supply, 
recreation, hurricane and storm damage reduction, aquatic 
plant control, and environmental protection and restora-
tion. 
‘‘(d) COOPERATIVE AGREEMENT.—Any project under-
taken pursuant to this section shall be initiated only after 
non-Federal interests have entered into an agreement with 
the Secretary in which the non-Federal interests agree to 
pay the non-Federal share of the cost of construction of the 
project and 100 percent of the cost of operation, mainte-
nance, replacement, and rehabilitation of the project in ac-
cordance with section 103 of the Water Resources Develop-
ment Act of 1986 (33 U.S.C. 2213).
‘‘(e) SPECIAL RULE.—Construction of a project under 
subsection (a) for one or more of the purposes of protection, 
restoration, or creation of aquatic and ecologically related 
habitat, the cost of which does not exceed $750,000 and 
which will be located in a disadvantaged community as de-
termined by the Secretary, may be carried out at Federal 
expense. 
‘‘(f) DETERMINATION
OF CONSTRUCTION COSTS.—
Costs associated with construction of a project under this 
section shall be limited solely to construction costs that are 
in excess of those costs necessary to carry out the dredging 
for construction, operation, or maintenance of the author-
ized water resources project in the most cos- effective way, 
consistent with economic, engineering, and environmental 
criteria. 
‘‘(g) SELECTION OF SEDIMENT DISPOSAL METHOD.—
In developing and carrying out a water resources project 
involving the disposal of sediment, the Secretary may select, 
with the consent of the non-Federal interest, a disposal 
method that is not the least cost option if the Secretary de-
termines that the incremental costs of such disposal method 
are reasonable in relation to the environmental benefits, in-
cluding the benefits to the aquatic environment to be derived 
from the creation of wetlands and control of shoreline ero-
sion. The Federal share of such incremental costs shall be 
determined in accordance with subsections (d) and (f). 
‘‘(h) NONPROFIT ENTITIES.—Notwithstanding section 
221 of the Flood Control Act of 1970 (42 U.S.C. 1962d–
5b), for any project carried out under this section, a non-
Federal interest may include a nonprofit entity, with the 
consent of the affected local government. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $30,000,000 annually for 
projects under this section of which not more than 
$3,000,000 annually may be used for construction of 
projects described in subsection (e). Such sums shall remain 
available until expended. 
‘‘(j) REGIONAL SEDIMENT MANAGEMENT PLANNING.—
In consultation with appropriate State and Federal agen-
cies, the Secretary may develop, at Federal expense, plans 
for regional management of sediment obtained in conjunc-
tion with the construction, operation, or maintenance of 
water resources projects, including potential beneficial uses 
of sediment for construction, repair, or rehabilitation of 
public projects for navigation, flood damage reduction, hy-
droelectric power, municipal and industrial water supply, 
agricultural water supply, recreation, hurricane and storm 
damage reduction, aquatic plant control, and environ-
mental protection and restoration.