‘‘(F) If specifically recommended in the ap-
proved plan or interim recommendation, ex-
penditures pursuant to any Federal program,
the purpose of which is to provide for flood
damage compensation payments for loss of
crops, livestock, or structures, may be in-
creased, notwithstanding any otherwise applica-
ble restriction provided by law, with respect to
specifically designated lands within the water-
shed that are or would be subject to increased
flooding due to projects or measures rec-
ommended pursuant to subsection (c)(4)(E)(i).
Expenditures described in the preceding sen-
tence may be made either upon the incidence of
a compensable loss or pursuant to a binding
agreement providing for future fixed payments
that are subject to such conditions and limita-
tions as may be necessary or appropriate to
carry out the purposes of the watershed coun-
cil’s recommendations.
‘‘(3) FEDERAL LANDS.—Each Federal depart-
ment or agency with jurisdiction to manage Federal
lands within a designated watershed shall consider
those recommendations related to improvements in
the management of such lands that are contained in
approved plans or interim recommendations in all
future decisions respecting planning and activities on
such lands that will have significant impacts on fish-
eries habitat and uses and shall issue and make pub-
licly available a written explanation of its decisions
setting forth its rationale for adopting or departing
from such recommendations.
‘‘(4) FEDERAL PLANNING AND ACTIVITIES.—
‘‘(A) IN GENERAL.—Federal departments
and agencies, States, and units of local govern-
ment undertaking federally funded planning
and activities on non-Federal lands affecting
waters within the watershed shall consider those
recommendations pertaining to such planning
or activities contained in an approved plan or
interim recommendation and shall issue and
make publicly available a written explanation
setting forth its rationale for adopting or de-
parting from such recommendations.
‘‘(B) PLANNING AND ACTIVITIES ON NON-
FEDERAL LANDS AFFECTING WATERS WITHIN
THE WATERSHED.—In this paragraph, the term
‘planning and activities on non-Federal lands
affecting waters within the watershed’ means
the planning, design, or conduct of actions that
substantially and physically alter structures,
lands, or waters within the 100-year floodplain
in a manner that directly and significantly af-
fects fisheries habitat.
‘‘(C) MAINTENANCE
OF
NAVIGATION.—
This section shall not be construed as affecting
or impairing any authority of the Federal Gov-
ernment to maintain navigation.
‘‘(5) WETLANDS JURISDICTION.—The baseline
jurisdictional status of any agricultural lands on
which wetlands may be created or expanded as a re-
sult of increased flooding or altered drainage pursu-
ant to projects or measures recommended pursuant
to subsection (c)(4)(E)(i) shall, upon expiration or
termination of the agreement pursuant to which
such projects or measures were implemented, revert
to their baseline jurisdictional status. The jurisdic-
tional status of any agricultural lands on which wet-
lands may be created or expanded as a result of in-
creased flooding or altered drainage pursuant to
projects or measures recommended pursuant to sub-
section (c)(4)(E)(i) shall, to the extent of such cre-
ation or expansion, be governed by the methods and
regulations of the applicable program listed in sub-
section (e)(2)(E), as well as any regulations issued
under section 404 that are applicable to such pro-
gram, as those methods and regulations exist at the
time such funding is approved. The discharges from
any wetlands that are created or expanded for agri-
cultural pollution control purposes pursuant to rec-
ommendations contained in an approved plan or in-
terim recommendation shall not be required to ob-
tain a permit pursuant to sections 301 and 402 if
pollutants entering such wetlands result only from
normal agricultural practices such as crop produc-
tion, raising of livestock, or silvicultural activities.
‘‘(f) COMMUNITY FISHERIES HABITAT REVITALIZA-
TION PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary of the Inte-
rior, acting through the Director of the United
States Fish and Wildlife Service, shall establish a
community fisheries habitat revitalization program
in accordance with this subsection. Pursuant to the
program, the Secretary of the Interior shall provide
funding and technical assistance to each State fish
and wildlife agency for development and construction
of projects designed to improve urban watersheds
and public access to the waters of urban watersheds
in order to restore fisheries habitat or enhance fish-
eries uses and to provide recreational opportunities.
In cooperation with the State fish and wildlife agen-
cies, the Secretary of the Interior shall issue such
guidance as may be necessary to provide for the
planning and implementation of the program.
‘‘(2) ELIGIBLE PROJECTS.—In accordance with
the guidance issued pursuant to paragraph (1), each
State fish and wildlife agency may provide funding
and technical assistance to a project sponsor, as de-
fined by paragraph (3), for any project designed to
restore or enhance urban watersheds or waterways
in order to achieve 1 or more of the following objec-
tives:
‘‘(A) Watershed restoration and protection.
‘‘(B) Creation of floodplain riparian zones.
‘‘(C) Restoration or creation of wetlands.
‘‘(D) Stormwater management or treat-
ment.
‘‘(E) Removal of barriers to fish passage.
‘‘(F) Reestablishment of stream channel
environments.
‘‘(G) Creation or enhancement of rec-
reational fishing opportunities.
‘‘(H) Support for the formation and activi-
ties of local organizations to plan and imple-
ment restoration or enhancement projects.
‘‘(3) PROJECT SPONSORS AND COSPONSORS.—
Each project for which funding or technical assist-
ance is provided by a State fish and wildlife agency
under the program shall have a project sponsor. The
project sponsor may be a nonprofit organization or
a State, sub-State, tribal, or local unit of govern-
ment, agency, or district within the project area that
is authorized to receive, account for, and administer
funding and to execute such other responsibilities as
the Secretary of the Interior may prescribe for grant
agreements between the State agency and project
sponsor under the program. Any other such person
may be a project cosponsor.
‘‘(4) 
PROJECT
AREAS
AND
LOCATIONS.—
Projects receiving funding or assistance under this
program shall be located within the boundaries of an
urban watershed. Such projects may be eligible if
carried out on any municipal, Federal, State, county,
tribal, or private lands owned by the project sponsor
or a cosponsor.
‘‘(5) PROGRAM
PRIORITIES.—Each State fish
and wildlife agency shall give priority to funding and
providing technical assistance for projects—
‘‘(A) for which support and participation
by local citizens, governmental entities and
other affected interests has been demonstrated;
‘‘(B) located in or directly benefiting low-
income or economically depressed areas;
‘‘(C) designed to provide significant im-
provement in fisheries habitat and other eco-
logical values and functions in the watershed;
‘‘(D) that will integrate local communities,
schools, and for-profit and nonprofit organiza-
tions in efforts to restore or enhance commu-
nity fisheries or water quality and to provide
education and training opportunities in connec-
tion with such efforts; or
‘‘(E) that will contribute to the improve-
ment or creation of local business related to the
access to, and recreational use of, urban water-
sheds.
‘‘(6) GRANT
APPLICATION, APPROVAL, AND
PROGRAM IMPLEMENTATION.—The Secretary of the
Interior shall ensure that each State fish and wildlife
agency to which funding is provided under this sub-
section has the capability to efficiently and effec-
tively administer the program, including procedures
for—
‘‘(A) furnishing application procedures, eli-
gibility criteria, and other necessary informa-
tion to prospective project sponsors;
‘‘(B) simplifying or streamlining con-
tracting processes for grants not exceeding
$100,000; and
‘‘(C) reviewing applications and recom-
mending grant awards by an interdisciplinary
team possessing expertise in hydrology, ecology,
biology, recreation, agriculture, or such other
disciplines as may be necessary.
‘‘(7) FEDERAL SUPPORT AND REPORTING.—
‘‘(A) COMPILATION
OF
INFORMATION.—
The Secretary of the Interior shall compile in-
formation received from State fish and wildlife
agencies, based on annual reports to be pro-
vided by project sponsors, and transmit to ap-
propriate committees of the Congress not later
than January 1 of each year a comprehensive
report on implementation of the program, to-
gether with recommendations for any necessary
improvements or changes to program.
‘‘(B) ESTABLISHMENT
OF
COMMUNITY
FISHERIES
HABITAT
CLEARINGHOUSE.—In
order to support local implementation of
projects under the program, the Secretary of
the Interior, not later than 12 months after the
date of enactment of this section, shall establish
a community fisheries habitat clearinghouse
that will develop and maintain—
‘‘(i) a comprehensive and electroni-
cally accessible database, including a li-
brary of urban watershed restoration mate-
rials such as publications, periodicals, tech-
nical references, and videotaped informa-
tion; and
‘‘(ii) a listing of grassroots organiza-
tions, State, Federal, and tribal agencies,
and non-profit groups involved in urban
watershed restoration activities.
‘‘(C) LOCATION OF DATABASE.—The loca-
tion of the database will be selected by the Sec-
retary of the Interior after considering applica-
tions received from interested parties solicited
through public notice.
‘‘(8) CONDITIONS AND LIMITATIONS ON FUND-
ING.—The Secretary of the Interior shall establish
appropriate conditions and limitations applicable to
funding provided under the program, including the
following:
‘‘(A) A requirement that the Federal share
of the cost for implementing each project shall
not exceed 70 percent of the cost of the project
in any fiscal year and shall not exceed a total
of $500,000. Not more than 10 percent of the
Federal share of the cost of a project provided
in any fiscal year may be used for administra-
tive expenses.
‘‘(B) A provision allowing the non-Federal
share of such cost to consist, in whole or in
part, of in-kind services provided by project
participants and allowing the non-Federal share
to be waived in the case of any project carried
out in an economically depressed community
with a population of 50,000 or less.
‘‘(9) AUTHORIZATIONS.—There is authorized to
be appropriated to the Secretary of the Interior, to
carry out the program established by this subsection,
such sums as may be necessary for each of fiscal
years 2002 through 2006. Such sums shall remain
available until expended.
‘‘(g) FEDERAL SUPPORT.—
‘‘(1) TECHNICAL SUPPORT AND REPORTING.—
‘‘(A) INFORMATION
AND
GUIDELINES.—
Not later than 90 days after the date of enact-
ment of this section, and after consultation with
the Secretary of the Interior and the Adminis-
trator, the Secretary shall issue—
‘‘(i) information and guidelines on the
minimum content of State programs to be
approved under subsection (a);
‘‘(ii) information and guidelines on
the capabilities and purposes that should
be demonstrated by watershed councils
under subsection (b)(2); and
‘‘(iii) compilations of information,
such as bibliographies, manuals, sum-
maries or other appropriate means of orga-
nizing and disseminating information per-
taining to each of the planning elements
specified under subsection (c)(4).
‘‘(B) GUIDANCE.—The Secretary, after
consultation with the Administrator and the
Secretary of the Interior, shall issue guidance
to the States setting forth minimum require-
ments for applications to receive program
grants under paragraph (3)(A).
‘‘(C) PROGRESS REPORTS.—For purposes
of evaluating the progress of State and tribal
programs approved under this section, the Sec-
retary, in consultation with the Secretary of the
Interior and the Administrator, shall assemble
and review all reports on monitoring activities
carried out pursuant to watershed council rec-
ommendations and publish a report at least bi-
ennially describing the progress and accomplish-
ments of such programs, as well as rec-
ommendations for improvements in the design
or implementation of such programs.
‘‘(D) REPORT
ON
STATE
OF
FISHERIES
HABITATS.—The Secretary of the Interior shall
review the reports prepared by the Secretary of
Agriculture pursuant to the subparagraph (C),
together with any other information or data the
Secretary of the Interior may develop or deter-
mine to be necessary, and shall publish a report
at least biennially describing the state of the
Nation’s fishery habitats as well as the overall
progress being achieved in protecting and re-
storing such habitats.
‘‘(2) FISHERIES-RELATED INFORMATION INDI-
CATORS AND HABITAT CHARACTERISTICS.—
‘‘(A) IN GENERAL.—The Secretary of the
Interior, in cooperation with State fish and
wildlife agencies, shall compile and provide sci-
entific information for consideration by such
agencies in developing fisheries-related indica-
tors and associated habitat characteristics, as
described in this paragraph, and for consider-
ation by designated watershed councils in char-
acterizing waters and establishing watershed
objectives pursuant to subsection (c)(4).
‘‘(B) CONTENT OF CRITERIA.—Fisheries-
related indicators may be established by the
State fish and wildlife agencies pursuant to this
paragraph to set forth the appropriate factors,
indicators, measurements, and other consider-
ations which, independently or in combination,
will be indicative of a healthy, resilient, diverse,
and productive aquatic system and may distin-
guish among general categories of fisheries
based upon natural variations such as water
temperature and chemistry, flow regime, biotic
factors, habitat structure and composition,
drought, and any other relevant and appro-
priate considerations.
‘‘(C) HABITAT
CHARACTERISTICS.—With
respect to each general category of fisheries for
which criteria are established pursuant to this
paragraph, the State fish and wildlife agencies
should set forth those habitat characteristics
that are determined to be necessary or desirable
for a healthy, resilient, diverse, and productive
aquatic system, together with a description of
the most significant factors, including water
quality and quantity, that can cause adverse
impacts on or threats to those characteristics.
‘‘(3) FUNDING.—
‘‘(A) GRANTS FOR OPERATION OF STATE
PROGRAMS.—
‘‘(i) IN
GENERAL.—The Secretary
shall make grants to any State, with a pro-
gram approved under subsection (a) for
payment of the reasonable costs of car-
rying out the responsibilities described in
subsection (a)(2). Not less than 90 percent
of the amount of such grants made pursu-
ant to this paragraph shall be reserved for
supporting the planning and implementa-
tion of approved activities of designated
watershed councils.
‘‘(ii) 
MEMORANDUM
OF
UNDER-
STANDING.—As a condition of such grants,
the Secretary and the State shall enter
into a memorandum of understanding set-
ting forth the objectives and funding prior-
ities for the program, including conditions
requiring the State to undertake specific
activities to promote the formation of wa-
tershed councils through education, out-
reach, and the provision of funding for or-
ganizational and planning efforts to de-
velop requests for designation, as well as
conditions requiring the State or regional
fisheries commission to provide a substan-
tial portion of the funds available for wa-
tershed planning to those watershed coun-
cils associated with high priority water-
sheds.
‘‘(iii) LIMITATION
ON
ADMINISTRA-
TIVE EXPENSES.—Not more than 10 per-
cent of the amount of any grant made by
a State to a designated watershed council
may be used to pay the cost of administra-
tion or overhead in connection with the
council’s activities.
‘‘(iv) AUTHORIZATION OF APPROPRIA-
TIONS.—There is authorized to be appro-
priated to the Secretary to carry out this
paragraph such sums as may be necessary
for each of fiscal years 2002 through
2006. Such sums shall remain available
until expended
‘‘(B) FISHERIES HABITAT ACCOUNTS FOR
IMPLEMENTATION SUPPORT.—
‘‘(i) ESTABLISHMENT.—Each State
with a program approved pursuant to sub-
section (a) shall establish a fisheries habi-
tat account for the purpose of providing fi-
nancial support for implementation of
projects and measures recommended by
watershed councils pursuant to approved
plans and interim recommendations.
‘‘(ii) TRANSFERS.—Each State with a
program approved pursuant to this section
may reserve and transfer into its fisheries
habitat account an amount not to exceed
20 percent of the funds received in fiscal
year 2002 and each fiscal year thereafter
pursuant to section 319. Amounts so
transferred shall remain available until ex-
pended.
‘‘(iii) AUTHORIZED FUNDING FOR RE-
STRICTING LIVESTOCK ACCESS TO WATERS
WITHIN
A
DESIGNATED
WATERSHED.—
There is authorized to be appropriated to
the Secretary not to exceed $25,000,000
for fiscal year 2002 and each fiscal year
thereafter for the purpose of making
grants to States with programs approved
under subsection (a) to enable such States
to provide funds to any person, through an
account within a State’s fisheries habitat
account, for implementation of any appro-
priate measures recommended in an ap-
proved plan or interim recommendation for
restricting livestock access to waters within
a designated watershed and for providing
alternative water supplied for such live-
stock. Such sums shall remain available
until expended.
‘‘(iv) AUTHORIZED FUNDING FOR IM-
PLEMENTATION
OF
APPROVED
REC-
OMMENDATIONS.—There is authorized to
be appropriated to the Secretary not to ex-
ceed $250,000,000 for each of fiscal years
2002 through 2006 for the purpose of
making grants to States with programs ap-
proved pursuant to subsection (a) to enable
each such State to provide funds to any
person, through the State’s fisheries habi-
tat account, for implementation of ap-
proved recommendations, as provided by
subsection (e)(2). Such sums shall remain
available until expended.
‘‘(v) ALLOCATIONS
OF
AMOUNTS.—
Amounts appropriated pursuant to clause
(iv) shall be allocated among States with
programs approved pursuant to subsection
(a) giving priority consideration to States
that exceed other States in the following
categories:
‘‘(I) The amount of hydroelectric
instream use (millions of gallons per
day) in the State in the previous cal-
endar year, as identified by the
United States Geological Service.
‘‘(II) The total number of fishing
licenses, tags, permits, and stamps
sold by the State in the previous cal-
endar year.
‘‘(III) The degree of degraded
waters in the State.
‘‘(IV) The number of river miles
and lake acres in the State.
water for the purpose of augmenting instream
flows; and
‘‘(E) to obtain, under State law, an inter-
est in reservoir storage rights and the right to
release water from storage to maintain instream
flows.
Any right or interest obtained under State law in
connection with an expenditure made under this
paragraph shall be held by the appropriate State
agency or private entity or individual (as permitted
under State law) for its intended purpose in per-
petuity with respect to the purchase of a water right
or for the full term of the lease or other contractual
instrument with respect to any partial interest in a
water right.
‘‘(5) AUTHORIZATION; 
CONDITIONS
ON
EX-
PENDITURES.—The following conditions shall apply
to any expenditures made pursuant to paragraph
(4):
‘‘(A) Expenditures will result in, or make
a substantial contribution to, the maintenance
of instream flows or volumes that are necessary
to support the associated fisheries objectives or
uses designated pursuant to paragraph (2).